A Season of Growth, a Year of Achievement

A SEASON OF GROWTH, A YEAR OF ACHIEVEMENT

ANNUAL 2017 REPORT Building an America where freedom, opportunity, prosperity, and civil society flourish. A SEASON OF GROWTH, A YEAR OF ACHIEVEMENT

ANNUAL 2017 REPORT Heritage hosted more than 2,000 members and friends from across the country during our two-day Open House celebrating the Presidential Inauguration. COVER & INSIDE COVER: GETTY IMAGES; LEFT: WILLIS BRETZ LEFT: IMAGES; GETTY & INSIDE COVER: COVER

2 THE HERITAGE FOUNDATION | heritage.org ANNUAL 2017 REPORT

A Message from the Chairman and President

A Season of Growth, A Year of Achievement

n 1980, Heritage’s 3,000-page Mandate for Leadership gave the incoming Reagan Iadministration and Congress a comprehensive set of policy recommendations for revitalizing the economy, strengthening national security, and halting the centralization of power in the federal government. Washington observers soon began calling it “the Bible of the the federal appellate courts goes on to the Supreme Court. So Reagan administration.” By the end of President Reagan’s these “lower” court appointments are critical. first year in office, hundreds of Heritage’s recommendations had been adopted—and Americans were benefiting from Promoting Pro-growth Tax Reform historic tax cuts and an economic recovery that hasn’t been The highlight of the year, of course, was the groundbreaking matched since. tax reform signed into law just before Christmas. In early summer, Trump asked Mick Mulvaney, director of the Office Heritage has now repeated that winning pattern. Preparing of Management and Budget, to come up with a plan to get for the election of a new president and Congress in 2016, America’s economy back on track. And Mulvaney quickly Heritage developed a new Mandate for Leadership—a six-vol- called on us to help. ume series of conservative, research-based policy recommendations calculated to help the next president “Make America Stephen Moore and our tax policy experts outlined these Great Again.” principles to guide the reform effort: lower both corporate and individual tax rates; increase standard deductions and By the time we closed the book on 2017, the Trump admin- reduce special-interest “carve outs”; promote entrepreneur- istration had embraced 64 percent of our 321 recommen- ship by making capital expenses fully deductible in the year dations. Congress embraced many of them too: enacting they are incurred; and establish a territorial tax system that once-in-a-generation tax reform, rolling back onerous levels the playing field for American companies competing in regulations, and starting the long haul toward rebuilding our the global marketplace. dangerously depleted military. And once again, Washington observers referred to Heritage as “the president’s think tank.” The reform package enacted in December reflects those principles, transforming the tax code to one that promotes rather than Restoring Constitutionalism to the Courts penalizes economic growth. And the American people began to The year began strong, with the nomination and confirma- reap the benefits almost immediately—with higher take-home tion of Justice Neil Gorsuch to the U.S. Supreme Court. In pay, tax-cut-fueled bonuses, and a burgeoning job market. March 2016, candidate Trump had asked Heritage to help put together a list of superior candidates for the empty court seat. Reining in the Regulatory Regime John Malcolm, director of our Meese legal center, obliged. A In February, Congress began acting on another of our key rec- January 2017 Politico profile of Malcolm subsequently dubbed ommendations: to exercise their authority under the long-ig- him “the man who picked the next Supreme Court justice.” nored Congressional Review Act to overturn ill-considered rules implemented by the Executive Branch. Within months, There were many other outstanding judicial appointments as Congress used CRA resolutions to scotch 14 major rules final- well. The Senate confirmed 12 circuit court judges in 2017— ized by the Obama administration in its waning days. the largest number of appellate judges confirmed during the first year of any president in history. Most federal cases stop Also in March, The Washington Post reported that an execu- at the appellate level—only one of every 700 cases heard by tive order had “dismantled a White House working group on

A SEASON OF GROWTH, A YEAR OF ACHIEVEMENT 3 Kay Coles James, President Edwin J. Feulner, Former President The Torch Passes

eritage’s six-month search for a worthy successor to Heritage President Edwin J. Feulner Hcame full circle with the selection of long-time Heritage Trustee Kay Coles James. The decision was announced Dec. 19 at an all-staff meeting Heritage is many things to me: in Allison Auditorium. It was met with great enthusiasm • The single most significant force by Heritage staff, as well as conservative leaders across the in American conservatism, country. (See back cover.) • The home of the most extraordinary scholars and staff I’ve ever met, That enthusiasm is well-grounded. In a career spanning more • A network of dedicated alumni, who are not just a than four decades, James has excelled in a variety of posts in key part of the Heritage family but a vital asset for government, the private sector, the academy, and the non- promoting our agenda in every corner of America, profit world. In the late 1990s, she joined Heritage as a senior • A leading center for the training and expertise fellow and director of our Citizenship Project. She left to of the well-equipped team that’s so crucial to serve President George W. Bush as director of the U.S. Office advancing our principles and beliefs, of Personnel Management. In 2005, she was elected to our • And the living vision of the trustees and benefac- Board of Trustees. tors whose generosity supports us. Their intent is and will always be honored, and their resources In 2016, James and her Heritage colleague, former will continue to be shepherded wisely—because U.S. Attorney General Edwin Meese III, led President what they’ve helped to create must and will last Trump’s transition team for the Office of Management for generations. and Budget, Office of Personnel Management, and General Services Administration. With Kay Coles James at the helm, Heritage will remain, in the words of The Wall Street Journal editorial hailing her

In her first address as Heritage president, James told the staff: appointment, “True North.” HILLS DAVID

4 THE HERITAGE FOUNDATION | heritage.org ANNUAL 2017 REPORT

the social cost of carbon and rescinded a variety of Obama- era technical documents on the matter.” It was, the Post noted, “a big victory” for Heritage alumnus David Kreutzer, who “played an important role in shaping and writing the executive order.”

That was just the beginning of a huge regulatory rollback. Trump lifted the Obama-era moratorium on coal leases on federal lands and instructed Executive Branch agencies to reconsider the misleadingly named Clean Power Plan and hugely intrusive “Waters of the United States” regulations. All of these deregulatory actions—and more—came recommended by Heritage.

By year’s end, the Trump administration had withdrawn or delayed more than 1,500 proposed regulations. The change Mandate for Leadership was so significant, we had to change the name of our annual report on the number and cost of regulations from “Red Tape eleased in 1981, Heritage’s original Mandate Rising” to “Red Tape Receding.” Rfor Leadership offered policy recommendations for making government more efficient and And those changes made a difference. On Dec. 14, Trump accountable. It became a surprise best-seller. It announced that the regulatory rollback had saved the also became widely recognized as “the Bible of the American economy $8.1 billion, and would save another $9.8 Reagan administration,” establishing Heritage’s billion in fiscal 2019. reputation as a mover-and-shaker in Washington.

Moreover, the president embraced Heritage’s call for “culture In 2016, Heritage produced a Mandate for change” within the regulatory agencies. He directed them to Leadership series: six books containing 321 major be more deliberative about their rulemaking, to seek ways to policy recommendations for the incoming admin- offset new regulatory costs, and to create internal regulatory istration and the new Congress. Individual titles in reform task forces in each agency. the series were: The Road Ahead nn Blueprint for Reform: A Comprehensive Policy Agenda Of course, it’s never all roses in Washington. We were sorely for a New Administration in 2017 disappointed when the Senate fumbled Obamacare repeal— nn Blueprint for a New Administration: and fumbled it badly. Even though congressional conser- Priorities for the President vatives were able to fold repeal of Obamacare’s individual nn Blueprint for Reorganization: mandate into the tax reform bill, there is much yet to do An Analysis of Federal Departments before we are rid of this unworkable, unaffordable attempt to and Agencies impose government-controlled health care on our nation. nn Blueprint for Reorganization: Pathways to Reform and Cross-Cutting Issues Naturally, we are trying to accomplish much more than “just” nn Blueprint for Balance: health reform. Our mission remains bold: to build an America A Federal Budget for Fiscal Year 2018 nn Farms and Free Enterprise: where freedom, opportunity, prosperity, and civil society A Blueprint for Agricultural Policy flourish. And we have our work cut out for us! In its first year, the Trump administration As events like this spring’s March for Our Lives and School embraced fully 64 percent of the Mandate recom- Walk-Outs make clear, the Left continues to be better than mendations. No wonder the New Republic called conservatives in both messaging and mobilization. Their Heritage “The D.C. Think Tank Behind Donald sophisticated tactics enable community organization by a rad- Trump” and the University of Pennsylvania ranked ical few to look like organic action by millions of Americans. us as the No. 1 think tank globally in terms of This has played out again and again, and it will continue to impact on public policy. happen until conservatives fully understand how the Left

A SEASON OF GROWTH, A YEAR OF ACHIEVEMENT 5 does this, unmask each instance it occurs, and advance conservative solutions with equal skill.

Turning this table is a core part of the mission we are working to fulfill at Heritage. This is no mere parlor game, either— instead, it’s a battle for our nation. America has shifted leftward over the past decades and is suffering real harm due to bankrupt liberal policies. Today, we are the world’s largest debtor nation, with a fragmented society, often-forgotten First Principles, and a challenging future.

That’s the bad news. The good news is this is a battle we can win. We know we not only need good policy—we need to make good policy happen. And we will work tirelessly to do so until our mission is achieved and America’s future is secured. From Distinguished Fellow to EVP Kim R. Holmes, Ph.D. As Americans rang in the New Year 2018, they were already enjoying noticeably more freedom, opportunity, and prosperity than they had a year earlier. That is vital progress, and we Dr. Kim R. Holmes began the year as a Heritage continue to build upon it. And you, through your support of distinguished fellow. But in April, Edwin J. Feulner asked him to serve as our acting senior vice Heritage and our mission, are largely responsible for making president for research. it possible.

Overseeing research was nothing new to Holmes. The effectiveness of our work—your work—has not gone Prior to being named a distinguished fellow, he unnoticed. That’s why the University of Pennsylvania’s highly had directed our foreign and defense policy stud- respected Think Tanks and Civil Societies Program has now ies for more than two decades. ranked Heritage No. 1 among all global think tanks in terms of impact on public policy. In addition to managing our entire research program, Holmes continued to write on a wide range of sub- But we’re not resting on our laurels. Instead, we are continu- jects, from the sad legacy of the Russian Revolution ing to drive the conservative policy agenda forward, and we to how the American Left became so intolerant. are confident we’ll have even more progress to report for 2018. His extraordinary year ended on several high Meanwhile, we hope you enjoy this report on how much your notes. In September and October he went on involvement with Heritage has helped us achieve—on behalf an extensive speaking tour through Europe, of all Americans—in 2017. lecturing in international forums in France and Germany and at a series of events organized by Sincerely, the U.S. embassies in Switzerland and Austria. In December, Encounter Books reissued his third book, The Closing of the Liberal Mind: How Groupthink and Intolerance Define the Left, in paperback.

Things got even better for Holmes in 2018. On February 6, the Board of Trustees voted unan- imously to make him Heritage’s executive vice president. Thomas A. Saunders III Kay Coles James

Chairman President HILLS DAVID

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Heritage by the Numbers in 2017 In Memoriam

208 Heritage policy recommendations 389,783 Subscribers to Heritage’s Roger Ailes adopted by the Trump administration The Agenda newsletter A communications visionary, a champion of free speech and 199 Lectures & Seminars conducted 30.2MM DailySignal.com site sessions a free press, and recipient of Issue Briefs published Subscribers to The Daily 154 504,637 the Clare Boothe Luce Award, Signal’s Morning Bell newsletter 99 Backgrounders published Heritage’s highest honor. He 27 Legal Memoranda published 202MM Views of Heritage and took a cable TV upstart—Fox 9 Special Reports published Daily Signal Videos News Channel—and turned it into 31 Congressional testimonies delivered 1,169 Commentaries placed in major something not seen in decades: a national news outlet that pre- 12.4MM Heritage.org visitor sessions print/online publications sented all points of view fairly. 2.1MM Heritage Facebook fans 1,147 Television interviews conducted 626,000 Heritage Twitter followers 3,174 Radio interviews conducted Helen DeVos One of America’s most widely More than half a million members—who made all of the above possible. admired philanthropists. She and Thank you! her husband, Richard, generously supported dozens of good causes and projects, from the Helen DeVos Honors Given … Children’s Hospital to Heritage’s Richard & Helen DeVos Center for The Washington Free Beacon received our Henry Salvatori Prize for Religion and Civil Society. American Citizenship (May 11). John F. “Jack” Donahue Susan B. Anthony List President Marjorie Dannenfelser received our Robin A longtime supporter of Heritage and Jocelyn Martin Distinguished Intern Alumni Award (Oct. 17). and a great Christian philanthro- pist. During his lifetime, he and his District of Columbia Circuit Judge Brett M. Kavanaugh received our wife, Rhodora, received numerous Defender of the Constitution Award (Oct. 25). awards, including the Becket Fund’s “Canterbury Medal,” given in recognition of their commit- … Honors Received ment to defending religious liberty.

Kate O’Beirne David Azerrad, director of Heritage’s Simon Center for Principles and One of the conservative move- Politics and AWC Family Foundation fellow, received the American ment’s wittiest, warmest, and Legion’s National Education Award in “recognition and appreciation of wisest voices. Before winning his dedication to increasing public understanding of America’s founding national acclaim as a writer/editor principles” (Aug. 19). for National Review, Kate served admirably as our deputy director Jonathan Butcher, a senior policy analyst in Heritage’s Center for of domestic policy studies, then Education Policy, was a co-recipient of the State Policy Network’s Bob led our Congressional Relations Williams Award for Most Influential Research (Aug. 30). team in the post-Reagan era. Former Attorney General , the Ronald Reagan distin- Edwin Meese III Richard Odermatt guished fellow emeritus at Heritage, received the Military Order of A beloved colleague and Foreign Wars of the United States’ Distinguished Service Medal (June 17), Heritage’s longest-serving Eagle Forum’s Phyllis Schlafly Award for Excellence in Leadership employee. One of the most erudite (Sept. 23) and the Pacific Justice Institute’sFounders Award (Oct. 28). men in Washington, Richard was our director of research editing at The American Spectator presented its John Von Kannon Service to the the time of his death. The office Cause Award to Heritage Founder Edwin J. Feulner “for his indispens- suite housing our research editors able contributions to the advancement of conservative public policies now bears his name. and principles” (Sept. 26).

A SEASON OF CHANGE, A YEAR OF ACHIEVEMENT 7 ave a question about the federal budget, Hgovernment spending or the national debt? Romina Boccia has the right answer.

As deputy director of our Roe Institute for Economic Policy Studies (and our Grover M. Hermann Research Fellow), Boccia leads the team that crafts our annual Blueprint for Balance—a report detailing how Congress can balance the budget within 10 years by rightsizing the federal government in accordance with the Constitution.

Every year, that balancing act gets more difficult. But every year, that report gets more influential. The 2017 Blueprint for Balance profoundly influenced President Trump’s so-called “skinny budget” proposal. And the Republican Study Committee’s 2017 budget followed our Blueprint’s recommendations almost to the letter.

Unfortunately, neither of those budgets sur- vived Washington’s legislative process. Boccia’s response? To form the Fiscal Control Alliance, a working group of 25 budget experts from conservative and moderate organizations with one common purpose: to put an end to autopilot spending growth by identifying and promoting budget process reforms and enforcement mech- anisms that would enshrine fiscal discipline in Romina Boccia federal entitlement programs. Grover M. Hermann Fellow in Federal Budgetary Affairs

At the 2017 Resource Bank meeting in Colorado Springs, the Simon Center awarded Heritage’s 2017 Salvatori Prize for American Citizenship to The Washington Free Beacon for its investigative work exposing corruption in the media and in government. David Azerrad (RIGHT) presented the award to Editor- in-Chief Matthew Continetti (LEFT), May 11.

Former Attorney General Edwin Meese III (LEFT) presented our Defender of the Constitution Award to Judge Brett M. Kavanaugh (RIGHT) of the U.S. Court of Appeals for the District of Columbia Circuit. Kavanaugh also delivered Heritage’s 10th annual Joseph Story Lecture in October. DAVID HILLS; NATHAN ARMES; WILLIS BRETZ HILLS; NATHAN DAVID

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President Donald J. Trump hosts a Sept. 27 dinner for conservative leaders in the Blue Room of the White House. To his immediate left is Dr. Edwin J. Feulner, founder and then-president of Heritage. The Price of Success

eritage bid farewell to some great people in 2017. The Trump administration snapped up Hmore than 70 of our staff and alumni. Three who left us early on were: Russ Vought, a vice president at Heritage Action for America, was tapped to be deputy director of the Office of Management nn Paul Winfree, director of our Roe Institute for Economic and Budget, the No. 2 job at an agency that wields powerful Policy Studies, who took on dual roles at the White House influence over government spending. as director of budget policy and deputy director of the Domestic Policy Council. And then there’s Justin T. Johnson, now a special assistant to nn Nina Owcharenko Schaefer, our Preston A. Wells, Jr., the deputy secretary of defense. And Steven Groves, initially fellow in health policy, who left to serve as senior drafted as chief of staff to UN Ambassador Nikki Haley but counselor to the secretary of Health and Human Services. now deputy to White House Special Counsel Ty Cobb. And nn Dr. David Kreutzer, a senior research fellow in our Center Lisa Curtis, the National Security Council’s senior director for Data Analysis and one of the sharpest critics of the for South and Central Asia. And Roger Severino, head of EPA’s radical carbon control agenda, who signed up as the Civil Rights Office at the Department of Health and senior advisor at the EPA to inject some common sense Human Services. into the agency’s economic analyses. These have joined company with scores more Heritage alumni These three have since returned to Heritage, but many of in the Executive Branch, from Transportation Secretary their Heritage colleagues still toil within the Trump adminis- Elaine Chao to Secretary of the Army Mark Esper. tration, bringing conservative principles to bear throughout the Executive Branch. While we regret losing so many talented people to a new administration, it really is a blessing. As Edwin J. Feulner John Mitnick, Heritage’s senior vice president, general counsel, often observes, “People are policy,” and having the right peo- and secretary, was selected to serve as general counsel for the ple in place to advance our policy recommendations was one

SHEALAH CRAIGHEAD SHEALAH Department of Homeland Security. of the keys to Heritage’s phenomenal success in 2017.

A SEASON OF GROWTH, A YEAR OF ACHIEVEMENT 9 Lindsey M. Burke Heritage’s Will Skillman fellow in education and the director of our newest research hub: The Center for Education Policy

The Institute for Family, Community, and Opportunity

s‌ a high-schooler, Lindsey Burke knew exactly where she wanted to work: A‌ at The Heritage Foundation. In college, she was torn between two great passions: French In 2008, she learned that Heritage was looking for a research and public policy. Ultimately, she chose political science as assistant to help Dan Lips, a pioneer in the school choice move- the more promising pathway to Heritage. ment. It was the opportunity of her dreams, and she jumped at it.

But after earning her bachelor’s degree, Burke still wasn’t Burke was hired. Five years later, she was named our Will ready to abandon her other love. So she got a master’s in for- Skillman fellow in education policy. And in 2017, she was eign language education and began teaching French in rural picked to launch our newest specialty research hub: the

western Virginia. Center for Education Policy. HILLS DAVID

10 THE HERITAGE FOUNDATION | heritage.org ANNUAL 2017 REPORT

The DeVos Center’s Ryan Anderson (LEFT) and Jennifer Marshall (RIGHT) speak at a “Justice for Jack” rally on the Supreme Court steps the day of oral arguments in the Masterpiece Cakeshop case.

As the center’s director, Burke supervises two other scholars military bases to individual education savings accounts and all of Heritage’s initiatives to empower families with controlled by the students’ families. education choice and reduce federal intervention in all levels of schooling—from kindergarten through college. Under her The program would not require any new federal funding, but leadership, the center got off to a very fast start. it would allow our service men and women to decide how and where their kids receive their education, be it via public or pri- In April, less than three months after the center’s launch, vate schools, home-schooling or other education options. The Arizona Gov. Doug Ducey signed a bill dramatically expanding proposal promises to improve not only education outcomes, the state’s education savings account (ESA) program—to all 1.1 but military retention rates as well. million Arizona schoolchildren. Their parents can opt to have at least 90 percent of their children’s share of state education The win-win idea sparked immediate interest on Capitol Hill. funds go into personal ESAs. And they can use that money A formal legislative proposal may be introduced as early as for private school tuition, tutoring, educational therapy, 2018. Not bad for a brand new center. home-schooling materials—whatever they think best meets their children’s educational needs. Defending Religious Liberty Our DeVos Center for Religion and Civil Society had a change Of course, that victory was not achieved in just three months. in leadership, but never a change in its mission to protect and Heritage and the Phoenix-based Goldwater Institute had promote marriage, life, and religious liberty. worked for years to make the case for how ESAs would benefit all Arizona families. And before 2017 ended, Burke and her President Trump selected Center Director Roger Severino team notched another victory: North Carolina became the to serve as director of the Office for Civil Rights in the sixth state to enact an ESA program. Department of Health and Human Services (HHS). The Atlantic subsequently dubbed him “the man behind Trump’s The center’s first federal policy victory came in December. religious-freedom agenda for health care.” During the tax reform debate, the education team preached the advantages of letting families use funds in their 529 Assuming Severino’s responsibilities at Heritage was Emilie college savings for K-12 private school tuition, as well. Their Kao, an accomplished attorney who had spent the previous arguments prevailed, and that provision was included in the 14 years defending the free exercise of all faiths from posts tax bill—a huge advance for the school choice movement. in the State Department’s Office of International Religious Freedom and at Becket Law, a nonprofit public-interest The center opened up a new front in the battle for school legal foundation. choice in July. That’s when Burke and Research Assistant Anne Ryland came up with the idea of “A GI Bill for Children Kao lost no time putting that experience and commitment of Military Families.” Their groundbreaking proposal: shift to work. With Meese Center Director John Malcolm, she

JEFFREY MALET federal Impact Aid from the coffers of schools districts near co-authored a Legal Memorandum explaining the legal issues

A SEASON OF GROWTH, A YEAR OF ACHIEVEMENT 11 On the day the justices heard oral arguments in Masterpiece, Jennifer Marshall, vice president of our Institute for Family, Community, and Opportunity, joined Dr. Ryan T. Anderson, our William E. Simon senior research fellow in American principles and public policy, on the steps of the Supreme Court to address a large crowd rallied in support of religious freedom. The court will render its decision in 2018.

The center didn’t have to wait until then for good news, though. The Supreme Court delivered a big win for religious liberty on June 26. That’s when the justices ruled 7-2 in n Nov. 16, Vice President Jennifer Marshall favor of Trinity Lutheran Church in its suit against the state hosted Heritage’s fourth annual Antipoverty O of Missouri. Forum, gathering members of Congress, White House and congressional staff, and think tank experts. Welfare reform is expected to be back on The church had applied for state grant money to resurface Washington’s agenda within the next two years. its pre-school playground. Even though its safety improve- ment plan met all of the program’s criteria for funding, the Following the forum, Marshall and Heritage wel- state claimed it could not permit government funds to go to fare expert Robert Rector were in high demand by a church. congressional and White House staff seeking feedback and improvements to the reform proposals The court, however, saw it differently. Writing for the majority, they are working up. Chief Justice John Roberts announced that “the exclusion of Trinity Lutheran from a public benefit for which it is other- wise qualified, solely because it is a church, is odious to our Constitution… and cannot stand.”

The significance of the decision goes far beyond the playground at Trinity Lutheran. As Kao explained in a Daily Signal commentary, the larger lesson is that pressuring religious communities to renounce their beliefs by threatening to exclude them from competing in government programs is an unconstitutional violation of religious freedom.

Not all of the center’s victories came in the courtroom. On TOP: Jennifer Marshall and Rep. Jim Jordan, R–Ohio, March 31, Congress passed a Congressional Review Act BOTTOM; FROM LEFT: Marie Fishpaw, Robert Rector, and resolution overturning an HHS rule that barred states from Paul Winfree. denying Title X family planning funds to abortion providers. The Obama-era rule had effectively required states to fund in Masterpiece Cakeshop v. Colorado Civil Rights Commission, Planned Parenthood. one of the most consequential cases argued before the Supreme Court in 2017. Another highlight for the center: publication of Debating Religious Liberty and Discrimination (Oxford University The case concerns Jack Phillips, a Colorado baker whose reli- Press). Co-authored by Wayne State University’s John gious beliefs led him to decline a request to create a custom Corvino (an LGBT advocate), Princeton’s Sherif Girgis, and cake for a same-sex wedding. The Left claims this is discrim- Ryan T. Anderson, the book presents a point-counterpoint ination. That’s not the case. Jack has served all customers for exploration of how to promote the common good while 24 years, but he simply can’t express all messages. respecting conscience and religious liberty in a diverse society.

The DeVos Center explored other aspects of the debate in “If American society follows the lead of this book, our culture several public events, such as its panel discussion of “Uncivil wars won’t end, but they just might be kinder and smarter,” Discourse: Why the Left Is Wrong to Compare Traditional wrote Russell Moore, president of the Ethics & Religious

Marriage Supporters to Racists.” Liberty Commission of the Southern Baptist Convention. ERIN GRANZOW

12 THE HERITAGE FOUNDATION | heritage.org ANNUAL 2017 REPORT

J.D. Vance, best-selling author of Hillbilly Elegy, During a two-hour, primetime debate on CNN with keynoted the July 20 launch of the 2017 Index of Sen. Bernie Sanders, I–Vt., (LEFT), Sen. Ted Cruz, Culture and Opportunity. Vance also wrote the R–Texas, (RIGHT) held up a Heritage chart showing introduction to the Index, edited by Heritage Vice the lack of competition in many Obamacare President Jennifer Marshall. exchange markets.

Fixing a Failing Health Care System failure that would move us no closer to achieving free-market, Heritage’s Domestic Policy Studies team also welcomed a new patient-centered reform. leader. When Director Nina Owcharenko joined the administration as senior counselor to HHS Secretary Tom Price, she Senior Fellows Edmund Haislmaier and Dr. Robert Moffit was replaced by Marie Fishpaw. explained to lawmakers—and the media—why it would be so much better to get the federal government out of running As a former policy advisor to Vice President Cheney and the insurance markets and instead expand personal choice congressional members and as a businesswoman who helped in health care. That, they argued, is the path to making launch a tech company, Fishpaw has deep experience provid- high-quality care available at affordable prices. ing leadership for the most complex opportunities. Though disappointed with the failure of the initial drive to That experience came into play throughout the year, as the repeal Obamacare, the team saw a chance to take a second Domestic Policy team highlighted the need for Congress to bite at the apple when the tax reform debate began. The only start undoing Obamacare’s damage. reason the individual mandate was not struck down years ago was because the Supreme Court saw fit to call it a “tax.” Of course, Heritage first pushed for total repeal of Obamacare. So what better way to repeal a mandate-cum-tax than with Congress’s failure to do so was scandalous. But it could have tax reform? been worse. Our Domestic Policy team kicked into high gear to make the In March, Congress was poised to pass the American Health individual mandate a thing of the past. And it became exactly Care Act. A non-repeal “repeal” bill, it would have left that, when President Trump signed the tax reform bill into Obamacare’s costly regulations largely in place—a spectacular law just days before Christmas.

2017 Testimonies by Scholars in the Institute for Family, Community, and Opportunity

Jan. 24: The Real Changes in Health Insurance Sept. 12: Health Care: Issues Impacting Cost Enrollment Under the Affordable Care Act and Coverage Edmund F. Haislmaier before the House Edmund F. Haislmaier before the Senate Budget Committee Finance Committee WILLIS BRETZ; CNN WILLIS BRETZ;

A SEASON OF GROWTH, A YEAR OF ACHIEVEMENT 13 Thomas W. Spoehr Director of the Davis Institute’s Center for National Defense

The Kathryn & Shelby Cullom Davis Institute for National Security and Foreign Policy

ovember 30 was a special day for Thomas W. Spoehr, director of our Center for National NDefense. He was going to give congressional testimony about how the Pentagon should revise its National Defense Strategy.

It wasn’t the subject matter that had Spoehr so excited, in the face of horrific torture. As a professional soldier, Spoehr though. A retired Army lieutenant general, he is a master of always regarded McCain as a role model, yet in 36 years in strategic thinking. What made the day special for Spoehr was uniform, he had never met him. his audience—the Senate Armed Services Committee—more specifically, its chairman, Sen. John McCain, R–Ariz. That changed on Nov. 30. And the testimony Spoehr delivered that day helped guide development of the new—and Whatever you may think of McCain’s politics, he is indisput- vastly improved—National Defense Strategy, released in

ably a true war hero, courageous, and true to his country even January 2018. HILLS DAVID

14 THE HERITAGE FOUNDATION | heritage.org ANNUAL 2017 REPORT

Scenes from the October 5 event marking the release of the latest Index of U.S. Military Strength (LEFT TO RIGHT): Rep. Mac Thornberry, R–Texas, chairman of the House Armed Services Committee; Index Editor Dakota L. Wood, Heritage’s senior research fellow in defense programs; John “JV” Venable, senior research fellow for defense policy.

Compared to the previous, Obama-era strategy document, Standing Up to Russia this one assesses both our potential adversaries and our own Heritage had long urged President Obama to push back “eroding military advantage” more honestly. Perhaps most against Vladimir Putin’s aggressive adventurism—and important of all, it stresses the need for “rebuilding mili- with more than just sanctions for its treaty violations. tary readiness.” The new administration proved far more receptive to our recommendations. This echoes a central theme in President Trump’s National Security Strategy, a document released one month earlier. In June, President Trump acted on our request that he Not coincidentally, the theme reflects the core findings of the meet with Ukraine President Petro Poroshenko. Six months Defense Center’s premier research document, The Index of later, the U.S. State Department announced it would provide U.S. Military Strength. Ukraine with “enhanced defensive capabilities” for its ongo- ing battle with Russian-backed separatists. For four years running, the Index has documented the deterioration of our military’s capacity to meet growing global Similarly, State approved the sale of Javelin anti-tank missiles threats. Currently, we have only two-thirds of the military to Georgia, which Russia has illegally occupied since 2008. resources we need—and only a third of what we have is com- Luke Coffey, director of our Allison Center for Foreign Policy bat-ready. But the tide began to turn in 2017. Studies, had advocated providing both Ukraine and Georgia with lethal arms in their fight against Russian expansionism. The National Defense Authorization Act, signed in December, included many of Heritage’s recommendations. For example, In another none-too-subtle swipe at Moscow, the Senate it authorized: an $80 billion increase in defense spending, 90 voted 97–2 to admit tiny Montenegro into NATO. Heritage new F-35 Joint Strike Fighters, 24 Navy F/A-18 Super Hornets, had long endorsed that move, and our arguments were only 13 new combat ships, a significant expansion of ballistic strengthened after Russia engineered an attempted 2016 coup missile defenses, and a greater military presence in the Asian- of Montenegro’s freely elected government. Pacific. Every one of these improvements came directly from Heritage’s playbook for rebuilding military strength. Opposing Chinese Expansionism and North Korean Lawlessness Several other initiatives championed by Heritage for years All talk, no action—that pretty much summed up President also made their way into the act. For example, it authorized Obama’s celebrated “Pivot to Asia.” China continued to press imposing economic sanctions on individuals abetting Russia’s its expansive territorial claims, threaten international sea- repeated violations of the Intermediate-Range Nuclear lanes and air space, and accelerate its military build-up. North Forces (INF) Treaty. It also barred lowering the alert levels of Korea continued to advance its illegal nuclear and ballistic

WILLIS BRETZ our own nuclear forces. missile programs.

A SEASON OF GROWTH, A YEAR OF ACHIEVEMENT 15 2017 Testimonies by Scholars in the Davis Institute

Jan. 9: China’s S&T and Innovation Efforts July 25: Maximum Pressure and Engagement—Still Dean Cheng before the House Armed Services Pulling Punches on U.S. Policy Toward Committee—Subcommittee on Emerging North Korea Threats and Capabilities Bruce Klingner before the Senate Foreign Relations Committee—Subcommittee Jan. 24: U.S. Defense Budget for Fiscal Year 2018 on East Asia, the Pacific, and Dakota Wood before the Senate Armed International Cybersecurity Services Committee July 26: South Sudan’s Conflict and Famine Feb. 1: Next Steps in the “Special Relationship”: Joshua Meservey before the Senate Foreign Impact of a U.S.-U.K. Free Trade Agreement Affairs Committee—Subcommittee on Africa Dr. Nile Gardiner before the House Foreign and Global Health Policy Affairs Committee—Subcommittee on Terrorism, Nonproliferation, and Trade; Sept. 13: Time for Shock and Awe Sanctions on Subcommittee on Europe, Eurasia, and North Korea Emerging Threats Bruce Klingner before the House Committee on Financial Services—Subcommittee on Feb. 24: The Future of Counterterrorism: Addressing Monetary Policy the Evolving Threat to Domestic Security Robin Simcox before the House Homeland Sept. 14: North Korea’s Perpetual Provocations: Another Security Committee—Subcommittee on Dangerous, Escalatory Nuclear Test Counterterrorism and Intelligence Bruce Klingner before the House Committee on Foreign Affairs—Subcommittee on Asia Feb. 28: China’s “Core” Maritime Interests: Security and and the Pacific Economic Factors Dean Cheng before the House Foreign Affairs Sept. 14: Staying Ahead of the Islamist Terrorist Committee—Subcommittee on Asia Threat: Assessing Future Domestic Counterterrorism Measures March 21: Sisyphean Diplomacy: The Dangers of David Inserra before the House Committee Premature Negotiations with North Korea on Oversight and Government Reform— Bruce Klingner before the House Committee Subcommittee on National Security on Foreign Affairs—Subcommittee on Asia and the Pacific Nov. 30: Recommendations for a Future National Defense Strategy April 26: Information Dominance: The Importance Thomas Spoehr before the Senate Armed of Information and Outer Space in Services Committee Chinese Thinking Dean Cheng before the House Foreign Affairs Dec. 6: Brexit: A Negotiation Update Committee—Subcommittee on Asia and Dr. Nile Gardiner before the House Foreign the Pacific Affairs Committee—Subcommittee on Europe, Eurasia, and Emerging Threats May 17: Southeast Asia: The Need for Economic Statecraft Dec. 12: Cambodia: A Democracy in Peril Walter Lohman before the House Committee Olivia Enos before the House Foreign Affairs on Foreign Affairs—Subcommittee on Asia Committee—Subcommittee on Asia and and the Pacific the Pacific

Today, however, Beijing and Pyongyang are meeting resis- cool-headed analyses helped convince lawmakers to require a tance—the kind of resistance recommended by Heritage. greater U.S. military presence in the Asian-Pacific.

Dean Cheng, a senior research fellow in our Asian Studies He also helped convince the administration to push back Center, testified twice before Congress on China’s military against Chinese pressure to abandon our commitments build-up, its space and cyber-warfare programs, and its to Taiwan. In June, the State Department announced it theft of American technology and intellectual property. His would make $1.42 billion worth of arms available to Taiwan.

16 THE HERITAGE FOUNDATION | heritage.org ANNUAL 2017 REPORT

Ana Rosa Quintana, senior policy analyst in our On Dec. 12, Olivia Enos, a policy analyst in our Allison Center for Foreign Policy Studies, discusses Asian Studies Center, tell members of the House U.S.-Mexico relations with David Asman on Fox Subcommittee on Asia and the Pacific about human Business, Feb. 22. rights abuses in Cambodia.

And during his November trip to Asia, President Trump technology; its refusal to allow inspections of its military announced he would continue to sell arms to the Taiwanese. bases; and its repeated defiance of UN Security Council resolutions on arms imports and exports. Sen. Ted Cruz, R–Texas, relied on the research and analysis of Senior Research Fellow Bruce Klingner to develop his pro- Diplomacy with Accountability posal to put North Korea back on the list of State Sponsors of “Nervous State Department workers prepare for major Terrorism. By year’s end, not only was Pyongyang listed, but restructuring.” That April 9 article in Politico reported that President Trump had issued an Executive Order giving the career State Department staff were poring through a back- Treasury Department new authority to go after people and grounder by Heritage’s Brett Schaefer to figure out where the companies that do business with North Korea. cuts would come. Trump transition aides were “enamored” of Schaefer’s “How to Make the State Department More All of these Heritage-backed initiatives aim to stifle foreign Effective at Implementing U.S. Foreign Policy,” a former entities’ willingness to do business with Kim Jong-un’s rogue senior official at State complained toPolitico . regime, hampering Pyongyang’s ability to pursue its nuclear program and other illegal activities. One of the major reforms recommended by Schaefer—and subsequently implemented—was elimination of several Reducing Chaos in the Middle East special State Department “czars” or “envoys” dedicated to When the Obama administration dismissed the Islamic State specific global issues such as women’s rights or health care. as a “JV Team,” Heritage cautioned that the terror network All too often, such appointments had muddied the diplomatic should be taken seriously. They largely ignored our advice, waters, leaving both U.S. and foreign officials confused as to but the Trump administration took it to heart. the relative importance of various U.S. foreign policy interests and with whom they should be dealing. The new president accelerated the pace of airstrikes and gave commanders in the field more freedom to take action. In less Schaefer notched another win on Oct. 12, when the admin- than nine months, the “caliphate” was no more and ISIS was istration announced that the U.S. would withdraw from destroyed as a military power. That produced a wonderful UNESCO. Schaefer has led Heritage’s campaign to get the U.S. ripple effect: 2017 logged the first big downturn in global out of the organization since 2012. terrorism since 2010. The State Department cited three key reasons for withdraw- In October, President Trump “decertified” the Iran nuclear ing its support: non-payment of dues by many UNESCO mem- agreement—a deal premised on misinformation and wish- bers; the organization’s “anti-Israel bias;” and its continuing ful thinking. Heritage, opposed to the pact from the start, “need for fundamental reform.” Schaefer’s research, commen- rigorously documented Iran’s failure to keep its side of the taries, and media interviews had highlighted precisely those

FOX NEWS; WILLIS BRETZ NEWS; FOX bargain: its continuing effort to acquire nuclear and missile three problems—over and over—for five years.

A SEASON OF GROWTH, A YEAR OF ACHIEVEMENT 17 Paul J. Larkin Jr. Senior Legal Research Fellow in the Edwin Meese III Center for Legal and Judicial Studies

The Institute for Constitutional Government

n courtrooms and law libraries, Paul J. Larkin Jr. is a legal phenomenon. After fighting Iorganized crime and racketeering as a trial attorney in the Reagan administration’s Justice Department, he became an assistant to the solicitor general and argued 27 cases before the U.S. Supreme Court. Since coming to our Edwin Meese III Center for Legal Larkin’s output is extraordinary in its quality as well as its and Judicial Studies in 2011, Larkin has channeled that volume. As Law Professor Mark Osler observed, “Larkin leads courtroom energy into scholarly research and writing. He rather than follows. His work often begins conversations that go published seven major law review articles in 2017 alone. To on among the rest of us, and that leadership role is invaluable.” put that in context, the typical law-school faculty member manages one such article per year—two or three if they’re In 2017, Larkin’s leadership was most visible in the campaign

really productive. to revive the Congressional Review Act—the statute that HILLS DAVID

18 THE HERITAGE FOUNDATION | heritage.org ANNUAL 2017 REPORT

Tracking Voter Fraud

he Left insists that voter fraud is virtually non-ex- to two state laws: a Texas voter ID law and an Ohio Tistent. Heritage.org/voterfraud, Heritage’s Voter statute that authorizes the state to purge voter rolls Fraud Database, proves them wrong. of people who haven’t cast ballots in the last two elections and don’t respond to requests asking them Heritage continued to track down examples of proven to confirm their registration. The U.S. Supreme Court voter fraud in the U.S. throughout 2017. At year’s will hear the Ohio case in 2018. end, the database contained over 1,100 documented incidents of voter fraud committed in 47 states.

Our database has received significant media coverage, and WhiteHouse.gov linked to it as part of the administration’s initiative to assure election integrity. More importantly, it has been cited in court opinions and amicus briefs as proof that voter fraud exists and must be taken seriously.

Our Election Integrity Initiative also picked up welcome support from the Trump administration. His Justice Department reversed course on challenges

enables Congress, by majority vote, to reject rules created and Bank of America settled a case over the latter’s mort- by federal regulatory agencies. The law was great in theory. gage-lending practices. As part of the settlement, the bank But since Congress passed it more than 20 years ago, law- was directed to pay $100 million to various “progressive” makers had exercised their power to overturn bad rules activist groups—none of which had been harmed by the precisely once. bank’s lending.

Determined to change that, Larkin wrote two Legal Diverting settlement funds to favored left-wing organiza- Memoranda—“The Reach of the Congressional Review Act” and tions rather than injured parties or the federal treasury was “Judicial Review Under the Congressional Review Act.” Widely commonplace under the Obama administration. Heritage circulated on the Hill, these papers proved highly influential. objected strenuously to this abusive practice, arguing that the Executive Branch should not be allowed to use its legal muscle Larkin argued that, in many cases the Obama administration to shake down corporations and bankroll its political allies. had failed to meet notification requirements established in the act. It meant that Congress could overrule regulations and The new administration saw things our way. On June 5, “guidance” letters going back to 2009. The Wall Street Journal Attorney General Jeff Sessions issued a memo prohibiting U.S. called Larkin’s revelations “a regulatory game changer.” attorneys from including unrelated third-party payouts in any settlement. The Justice Department’s “slush fund for fellow Larkin followed up his research with personal briefings for travelers” was cut off. Office of Management and Budget officials (including Director Mick Mulvaney), as well as senior staffers to Senate Majority Breaking up the Judicial Appointment Logjam Leader Mitch McConnell, R–Ky., The goal was to help them President Trump did an admirable job of nominating con- make the most of the law, and “make the most” they did. servative judges to open seats on the federal bench. (See Restoring Constitutionalism in the Federal Judiciary, p. 21.). By mid-May, Congress had used the law to roll back 14 But the number of vacancies actually increased during 2017. Obama-era rules, saving American families and businesses That’s because liberals flagrantly abused a little-known, billions of dollars. 100-year-old Senate convention: the “blue-slip” process.

Ending the Social Justice Slush Fund By tradition, after receiving notice of a judicial nomination, Deregulation was not the only issue where our Meese Center the chairman of the Judiciary Committee sends senators from experts won success. Three years ago, the Justice Department the nominee’s home-state a blue slip for them to indicate their

A SEASON OF GROWTH, A YEAR OF ACHIEVEMENT 19 2017 Testimonies by Scholars in the Meese Center

May 19: Collateral Consequences of Felony Convictions—Felon Voting Hans von Spakovsky before the U.S. Commission on Civil Rights

May 19: Collateral Consequences: Protecting Public Safety or Encouraging Recidivism? John G. Malcolm before the U.S. Commission on Civil Rights Heritage Legal Fellow Elizabeth Slattery joins three other legal scholars—Michael Carvin, C. June 8: A Time to Reform: Oversight of the Boyden Gray, and Ed Whelan—for a C-SPAN- Activities of the Justice Department’s televised discussion of the qualifications and past Civil, Tax and Environment and Natural rulings of then-nominee Supreme Court Justice Resources Divisions and the U.S. Neil Gorsuch. Trustee Program Hans von Spakovsky before the House Judiciary Committee—Subcommittee on Regulatory Reform, Commercial and approval of the choice. But “progressive” senators refused Antitrust Law to return their slips to the chairman, leaving the next step of the process—confirmation hearings—in limbo. What started June 29: The Report and Recommendations of as a courtesy was being used to blackball constitutional- the International Competition Policy ist nominees. Expert Group Alden F. Abbott before the House Judiciary Committee—Subcommittee Meese Center advocates spoke out against this obstruction- on Regulatory Reform, Commercial and ism, urging the chairman to reform the process. The com- Antitrust Law mittee responded with a new, improved rule. The blue-slip process still allows home-state senators to indicate how they July 27: Antitrust Concerns and the FDA will vote on a nomination, but confirmation hearings can go Approval Process Alden F. Abbott before the House forward with or without their feedback. No longer can a single Judiciary Committee—Subcommittee senator wield veto power over a presidential nomination. on Regulatory Reform, Commercial and Antitrust Law Advancing Legal Training and Education The Meese Center organizes a variety of educational pro- The Heritage Foundation’s Election Sept. 12: grams. Running through them all is a common thread: the Fraud Database Hans von Spakovsky before the desire to restore the courts to their constitutional role of Presidential Advisory Commission on protecting individual liberty and restraining illegal govern- Election Integrity ment action.

Sept. 28: Rulemakers Must Follow the Rules, Too: To this end, Legal Fellow Elizabeth Slattery, manager of Oversight of the Agency Compliance with our Appellate Advocacy Program, hosted 12 moot court the Congressional Review Act sessions in 2017. These “dry run” exercises help conservative Paul J. Larkin Jr., before the House Judiciary Committee—Subcommittee advocates shape and refine the oral arguments they present on Regulatory Reform, Commercial and in important cases before the U.S. Supreme Court and U.S. Antitrust Law Courts of Appeals. Slattery also organized amicus conferences to coordinate friend-of-the-court briefs filed by dozens of Nov. 30: The Role and Impact of Nationwide conservative legal foundations and activists in 20 significant Injunctions by District Courts federal cases. Hans von Spakovsky before the House Judiciary Committee–Subcommittee on Courts, Intellectual Property and In May, the Meese Center hosted 43 CEOs from the free- the Internet dom-based public interest legal movement at its Spring Legal

Strategy Forum in Colorado Springs. Highlights included WILLIS BRETZ

20 THE HERITAGE FOUNDATION | heritage.org ANNUAL 2017 REPORT keynote addresses by First Amendment expert Floyd Abrams, state. It was her first official address since being confirmed the Claremont Institute’s Charles Kesler, and Chief Judge as head of the White House Office of Information and Timothy Tymkovich of the 10th Circuit, as well as workshops Regulatory Affairs. on legal issues pertaining to energy, the environment, and property rights. Day-long conferences convened by Meese Center scholars included: At our Fall Legal Strategy Forum, a former U.S. attorney general—Heritage’s Edwin Meese III—introduced the current nn a drug policy roundtable at which law enforcement attorney general, Jeff Sessions. The latter spoke about the officials, medical and behavioral experts, and adminis- need to defend constitutional rights, particularly those tration officials discussed how best to address the opioid regarding religious liberty and freedom of speech. The 47 crisis as well as problems arising from the spread of CEOs attending also heard from Labor Secretary Alex Acosta marijuana legalization. and D.C. Circuit Judge Brett Kavanaugh, who delivered the nn an Edwin Meese III-led summit meeting, of police chiefs 10th Annual Joseph Story Distinguished Lecture. and criminologists from across the country to discuss the current state of policing. Growing out of that meeting was The center’s eighth annual “Preserve the Constitution” a Heritage Special Report, “Policing in America: Lessons lecture series ran from September to early November. from the Past, Opportunities for the Future.” It included a Constitution Day address by Deputy U.S. nn a criminal law symposium, co-hosted by the University Attorney General Rod Rosenstein, a Supreme Court preview of California Berkeley School of Law, attracting over 20 featuring former U.S. Solicitor General Paul Clement, and top scholars to address topics such as police and race a spirited debate on the constitutionality of the president’s relations and criminal justice reform. Papers presented immigration order. The series culminated with a keynote at the meeting will be published in the Berkeley Journal of address by Neomi Rao on how to roll back the administrative Criminal Law in 2018.

Restoring Constitutionalism in the Federal Judiciary

t was a huge victory, more than state legislative posts up to the lower court appointments, too. In Ia year in the making. The confir- presidency. In conversations with fact, he had to keep adding names, mation of Neil Gorsuch as Antonin senate and presidential candidates, to replace those now seated Scalia’s successor on the Supreme the issue of judicial nominations on appellate courts throughout Court began way back in March invariably came up. So Malcolm set the land. 2016. That’s when John Malcolm, to work preparing his list. director of our Meese Center for By mid-year, liberal Sen. Chris Legal and Judicial Studies, com- Ten months later, Politico profiled Coons, D–Del., was wringing his piled and published a list of jurists him as “The Man Who Picked the hands over what he saw happen- most qualified to sit on the bench Next Supreme Court Justice.” ing to the federal bench. “Given of the highest court in the land. their youth and conservatism,” And what a pick it was! In his first Coons lamented, these new judges The idea for publishing the list six weeks on the Court, Justice will “have a significant impact arose after a series of meetings Gorsuch acted in defense of on the shape and trajectory of with people running for office federalism, property rights, and American law for decades.” that year. Heritage experts are religious liberty. It was just what always willing to brief candidates Malcolm and his colleagues had In all, 19 judicial nominees were on a variety of issues. It’s a great in mind: a principled jurist who confirmed—14 of them to federal way to promote our conservative believes in an originalist interpre- circuit courts, a record high for policy recommendations. tation of the Constitution—and the first year of a new presidency. he’s there for life. The balance of the courts is now By March, we had already had many tipping away from “progressive” such meetings with people running Names from Malcolm’s list kept judicial activism and back toward at all levels of government—from cropping up in President Trump’s the Constitution.

A SEASON OF GROWTH, A YEAR OF ACHIEVEMENT 21 The Simon Center: Exposing the Roots of Leftist Argumentation

Heritage’s B. Kenneth Simon Center for Principles and Politics has long been known for its expertise in explaining the founding principles of our nation. In recent years, it has opened up a second and equally valuable line of inquiry: explicating the intellectual underpinnings of modern “movements” of the Left. Scott Yenor on FNC’s “Tucker Carlson Tonight” A key player in this effort has been Boise State University discussing the controversy over his Daily Signal Professor Scott Yenor. In June of 2017, the Simon Center pub- article on transgenderism and radical feminism. lished a First Principles essay that Dr. Yenor had researched as our 2015-2016 visiting fellow in American political thought. The essay, “Sex, Gender and the Origin of the Culture Wars,” insists society do more than simply tolerate transgenderism: traced the intellectual history of the Left’s latest cause célèbre: “The public must come to affirm these gender performances as transgender rights. admirable, healthy, and authentic.”

Yenor established a direct link between Simone de Beauvoir The piece sparked thoughtful discussion in some quarters. On and other radical feminist theorists of the 1950s, ’60s, and Yenor’s campus, it sparked outrage. Within days, the school’s ’70s, and today’s transgender activists. Both movements, he director of student diversity and inclusion accused Yenor noted, insist that gender is a mere social construct and can be of propagating “fear fueled conspiratorial theories”; flyers completely untethered from genetics. screaming “YOU HAVE BLOOD ON YOUR HANDS SCOTT YENOR” papered the quad; and progressive students and The research was impeccable and attracted little criticism faculty members were calling for him to be fired. until the Simon Center launched Phase 2: broadly marketing the implications of his research to the general public. It was, in the words of The Weekly Standard’s Ben Shapiro, a It began with Yenor’s plain-spoken article in The Daily full-fledged “witch hunt.” And it couldn’t have worked out Signal, “How Radical Feminism Sowed the Seeds of Our better. The Left’s response was so irrational, it became a Transgender Moment.” national story. Yenor’s appearance on Tucker Carlson’s Fox News show so clearly exposed the Left’s Orwellian effort to “Today’s transgender movement is the latest effort to overturn stamp out free speech and academic inquiry, it altered the what are in fact true assumptions about human life,” the tone of the national debate surrounding transgenderism and article proclaimed. Yenor also noted that the movement free speech on campus.

The Simon Center’s Top 10 Publications for 2017

First Principles Series The Progressive Movement and the Transformation of American Politics, Dr. Thomas West Sex, Gender, and the Origins of the Culture Wars: An Intellectual History, Dr. Scott Yenor Can the State Be Neutral on Marriage? Dr. Scott Yenor The Limits and Dangers of Civil Disobedience, Dr. Peter Myers

Special Report From Natural Rights to Human Rights—And Beyond, Dr. Peter Myers

Lectures Populism and the Future of Democracy, Roger Kimball Pray for Chekov: Or What Russian Literature Can Teach Conservatives, Dr. Gary Saul Morson

Essays The Mind of Black Lives Matter, Dr. Peter Myers in National Affairs America Divided, Dr. David Azerrad’s three-part series in The American Spectator Civility and Rebarbarization, Arthur Milikh in National Affairs FOX NEWS FOX

22 THE HERITAGE FOUNDATION | heritage.org ANNUAL 2017 REPORT

Graduates of the Heritage Congressional Fellowship program, Sept. 25.

As the year drew to a close, Yenor’s teaching post was secure; program, run jointly by the Simon Center and the Policy Idaho lawmakers were preparing to cut funding for Boise Promotion team, is the only one of its kind on the Hill: it State, and “Sex, Gender, and the Origin of the Culture Wars” teaches first principles, conservative policy and congressional ranked as Heritage’s third most widely read essay of 2017. procedure to junior-level Senate and House staff.

Publishing with a Purpose The curriculum, designed by the Simon Center staff, features Yenor was not the only Simon Center-sponsored scholar to speakers from Heritage and other leading conservative orga- make a splash in 2017. Black Lives Matter has become the nizations and includes a day-long trip to Mount Vernon. most powerful and virulent social movement on the left. Its exaggerated claims about police brutality have received criti- “It’s a great opportunity to learn conservative principles and pol- cal scrutiny. But Dr. Peter Myers, the Simon Center’s visiting icies,” says Steve Chartan, legislative director for Sen. Ted Cruz, fellow in American political thought for the 2016-2017 aca- R–Texas. “Participating in Heritage’s Congressional Fellowship demic year, took a deeper look. The result: a widely discussed gives Hill staffers the tools they need to promote conservative article, “The Mind of Black Lives Matter,” in National Affairs. policy solutions that will improve the lives of all Americans.”

It was the first full-length exploration of the intellectual Teaching First Principles to the Next Generation theory underpinning the BLM movement. Myers, a political This year, almost 200 Heritage Foundation interns (who science professor at the University of Wisconsin—Eau Claire, come from over 120 universities around the country) will exposed the group’s radical claims and criticized them from complete the First Principles seminar. The weekly lecture the perspective of America’s two greatest civil rights leaders: series explores the principles that animated the Founding Frederick Douglass and Martin Luther King, Jr. Fathers and drive conservatism today.

Dr. Carson Holloway, our visiting fellow in American polit- Simon Center scholars lead classes that cover America’s ical thought during the 2014-15 academic year, produced founding documents (the Declaration of Independence and The Political Writings of Alexander Hamilton, a two-volume the Constitution) as well as modern liberalism, libertarianism edition published by Cambridge University Press. Dr. Michael and conservatism. In spirited group discussions, interns are Zuckert, editor of the journal American Political Thought, encouraged to apply these principles as they think through praised the work as “a major contribution to the study and thorny questions related to marriage, race, religion, foreign appreciation of the tradition of American political thought.” policy and the economy.

Dr. Thomas West’s First Principles essay on “The Progressive Interns consistently rank the seminars as a favorite part of Movement and the Transformation of American Politics” was the their internship. “As someone who attends an incredibly liberal most downloaded of all Heritage Foundation publications in 2017. state university,” explains Emily Walsher of the University of Florida, “I am only offered a single perspective in my college Making Congressional Staff More Conservative courses, and it’s not an unbiased one. The First Principles This year, 55 congressional staffers graduated from the lecture has equipped me with the philosophy and ideas to be

JOHN HARRINGTON Heritage Congressional Fellowship program. The year-long able to better understand who I am as a conservative.”

A SEASON OF GROWTH, A YEAR OF ACHIEVEMENT 23 Adam N. Michel Policy Analyst in our Thomas A. Roe Institute for Economic Policy Studies

Institute for Economic Freedom and Opportunity

s‌ Congress and the White House prepared to tackle a much-needed overhaul of the A‌ federal tax code, Heritage assembled a world-class tax policy team. Our first acquisition: Adam N. Michel.

Michel had been managing research for the Spending and Within months, Michel was not only turning out analytical Budget Initiative at the Mercatus Center at George Mason Issue Briefs and Backgrounders, he was moderating panels University. It was interesting work, but Michel found populated by the likes of Senate Budget Committee member himself itching to get more involved in policy analysis David Perdue, R–Ga., and Republican Study Committee and development. Chairman Mark Walker, R–N.C. The chance to personally question, probe and interact with legislative policymakers

He found that opportunity at Heritage. was exactly what the 28-year-old Michel had wanted. HILLS DAVID

24 THE HERITAGE FOUNDATION | heritage.org ANNUAL 2017 REPORT

Next to join the Heritage Tax Team: Parker Sheppard. He and commentary helped guide lawmakers during the final set to work in our Center for Data Analysis, designing a drive to a pro-growth tax code. world-class dynamic analysis model capable of showing the full economic effects of changes in tax policy. Previously, With Heritage leading the conversation on tax reform, it was our analysts had had to rely on tax models—each with its fitting that President Trump should join us for our annual peculiar problems and shortcomings—programmed by President’s Club Meeting. His stirring speech before more other organizations. than 1,000 Heritage members and friends reiterated his promise to deliver tax reform by Christmas. Michel and Sheppard joined the rest of Heritage’s tax policy dream team—David Burton, Rachel Greszler, and Kevin That pledge, broadcast live by Fox News and CNN, echoed Dayaratna—at just the right moment. In addition to providing across the country. Two months later, President Trump made “big picture” policy analyses, they were able to provide hard good on his promise, signing the most significant tax reform numbers to inform the debate in Congress. Those numbers in over 30 years into law three days before Christmas. dispelled the misleading talking points of tax reform oppo- nents and helped Americans understand the true benefits of pro-growth tax reform. How Trump’s Visiting Distinguished Fellow Stephen Moore, an informal “Skinny Budget” Took Shape White House advisor, continuously pressed for pro-growth reforms, insisting on lower rates for individuals and corpo- We’ll let The Washington Post set the stage: rations, a territorial tax system to level the playing field for American businesses competing abroad, and an end to the tax Up against the clock and with many senior staff positions still vacant, President Trump’s Office code’s built-in cronyism. of Management and Budget turned to one of the nation’s most conservative think tanks—The And, as the tax reform debate wore on, it became clear that Heritage Foundation—for inspiration. policymakers were listening to what our team had to say. Take The result: The Trump budget proposal released the issue of a Border Adjustment Tax (BAT), for example. last week bears a striking resemblance to The Lawmakers looking for a way to offset “revenue losses” created Heritage Foundation’s Blueprint for Balance: by tax cuts, latched on the notion of imposing a BAT. As the idea A Federal Budget for 2017, complete with a list of deep spending cuts designed to scale back the picked up steam, Michel responded with a paper presenting size and scope of the federal government. Heritage’s objections to this economically risky proposition. The idea quickly fell out of favor as a viable component of tax reform. —Steven Mufson, “Trump’s budget owes a huge debt to this right-wing Washington Think Tank,” March 27, 2017 By fall, Heritage had assumed a central role in the conversation. We hosted numerous lectures and seminars featuring Heritage’s Blueprint for Balance was a 165-page key policymakers such as House Speaker Paul Ryan, Ways proposal to wipe out the deficit in 10 years or less. and Means Committee Chairman Kevin Brady, R–Texas, Politico called its proposals to limit entitlement as and Kevin Hassett, chairman of the President’s Council of well as discretionary spending, “a wakeup call for Economic Advisors. C-SPAN carried three of these events live. the president at the height of budget season.”

Meanwhile, our Media Relations team was furiously booking Its lead author was Paul Winfree, director of our interviews—nearly 200 national radio and TV news programs Roe Institute for Economic Policy Studies. But shortly after putting the final touches toBlueprint , and scores more with major publications such as The New Winfree left for a new position: deputy director of York Times, The Washington Post, The Wall Street Journal, President Trump’s Domestic Policy Council and USA Today, Bloomberg, and Politico. Commentaries by Michel, White House director of budget policy. Moore and other Heritage tax experts appeared in 45 major print outlets. It was the place to be for someone seeking to alter the course of federal spending. As the debate reached its peak, Heritage’s Policy Promotion staff deliveredGetting to Tax Reform: The Facts, Principles, “People are policy,” they say. And in 2017, conserva- and Messaging for Fundamental Reform to every office on tive people and policies were in position to advance. Capitol Hill. The 230-page compilation of Heritage research

A SEASON OF GROWTH, A YEAR OF ACHIEVEMENT 25 Heritage’s analysis of the pact’s economic impact as a key factor behind the decision. That was gratifying for several Heritage staff members in attendance—who promptly returned to the office to work on their next campaign: extri- cating the U.S. from the even more onerous United Nations Framework Convention on Climate Change.

Progress also was made in dismantling the Obama Administration’s Clean Power Plan. Heritage research provided the intellectual foundation for the rollback, and Heritage people pushed it through.

One key player was Dr. David Kreutzer. He left our Center of Data Analysis for a post in the Environmental Protection Agency. The Washington Post subsequently credited him with playing “an important role shaping and writing” the Dr. David Kreutzer returned to Heritage after a President’s Executive Order that dismantled a White House brief but productive stint at the Environmental working group on “the social cost of carbon” and rescinded Protection Agency, where he helped rescind numerous related technical directives from the Obama era. many costly “technical directives” issued by the Obama administration. That order essentially dismissed the assumptions used by Obama’s EPA to justify extremely expensive carbon-reduction While the tax bill was not perfect, it was very good. As Michel regulations. The Post called it “a big victory for Kreutzer.” His says, “We got more than half a loaf [on expensing], and we’ll work done at EPA, Kreutzer returned to Heritage in April. be back for more in 2018.” It’s worth remembering that President Reagan did tax reform in two rounds. In 2018, Farms and Free Enterprise, a 129-page report from our Heritage will be back in the ring for Round 2, pressing to Mandate for Leadership series, presented cogent arguments expand the gains won in the Tax Cuts and Jobs Act. that helped convince President Trump to issue an Executive Order withdrawing the Obama-era “Waters of the United Restoring Reason to Environmental Policy States” rule. Both vague and subjective, that rule had greatly Tax reform wasn’t the only thing on the plate for analysts in expanded the reach of the EPA and the Army Corps of our Roe Institute for Economic Policy Studies. Our Energy Engineers, trampling on property rights and ignoring the role and Environment team worked hard and got results as well. of states and communities.

At a June 1 Rose Garden ceremony, President Trump The EPA also formally ended the use of “sue and settle,” a announced he would withdraw the U.S. from the unwork- favored approach for extreme environmental groups to influ- able—and hugely expensive—Paris Climate Accord. He cited ence regulatory agendas without public knowledge. These

In January, the University of Pennsylvania’s “Global Go To Think Tank Index Report” named Michael Sargent’s “Building on Victory: An Infrastructure Agenda for the New Administration” one of the 50 best think tank reports worldwide.

Sargent continued to shape the debate around infrastructure investment through briefings for senior administration officials, meetings with lawmakers, and engagement with the media. And with former Distinguished Fellow Elaine Chao now running the Michael Sargent Transportation Department, this will doubtless be one Policy Analyst of the most influential papers of 2018. DAVID HILLS; PAUL MORSE HILLS; PAUL DAVID

26 THE HERITAGE FOUNDATION | heritage.org ANNUAL 2017 REPORT

The 2017 Index of Economic UNITED STATES: INDEX OF ECONOMIC FREEDOM Freedom contained good news and bad news. Globally, economic freedom was greater than ever. But in the U.S., it declined FREE for the third straight year—and the ninth time in the last 10 years. MOSTLY FREE The Index has become a standard reference work for students of business and economics, investment houses and government policymakers around the globe. And it remains Heritage’s most popular research product. In 2017, the online version received nearly 8.5 million views and was down- ’’’’’’ ’’ loaded in its entirety more than 60,000 times.

2017 Testimonies by Scholars in the Institute for Economic Freedom and Opportunity

Feb. 15: The Tax Code as a Barrier to Entrepreneurship July 25: Examining U.S. Biofuels Policy David Burton before the House Small Nicolas Loris before the House Committee Business Committee on Science, Space and Technology— Subcommittee on Energy and Subcommittee March 1: Examining Environmental Barriers to on Environment Infrastructure Development Nicolas Loris before the House Committee Sept. 13: Recommendations for Government on Oversight and Government Reform— Reorganization and Lessons from Past Subcommittee on the Interior, Energy and Reorganization Efforts the Environment and Subcommittee on Rachel Greszler before the Senate Homeland Intergovernmental Affairs Security and Government Affairs Committee

April 6: Opportunities to Reform the Federal Financial Oct. 24: Regulatory Reform Task Forces Check-In Regulatory System Diane Katz before the House Oversight Dr. Norbert J. Michel before the House and Government Reform Committee— Financial Services Committee—Subcommittee Subcommittee on Government Operations on Financial Institutions and Consumer Credit and Subcommittee on Healthcare, Benefits, and Administrative Rules April 26: Regulatory Reforms to Create Hope and Opportunity for Investors, Consumers, Sept. 26: Examining America’s Nuclear Waste and Entrepreneurs Management and Storage Dr. Norbert J. Michel before the House Katie Tubb before the House Oversight Financial Services Committee—Subcommittee and Government Reform Committee— on Monetary Policy and Trade Subcommittee on the Interior, Energy, and the Environment May 18: Federal Employee Compensation: An Update Rachel Greszler before the House Committee Dec. 7: Transforming the Department of the Interior on Oversight and Government Reform for the 21st Century Nicolas Loris before the House Natural June 28: Main Street Needs Monetary Policy Reform Resources Committee—Subcommittee on More than Wall Street Does Oversight and Investigations Dr. Norbert J. Michel before the House Financial Services Committee—Subcommittee on Monetary Policy and Trade

A SEASON OF GROWTH, A YEAR OF ACHIEVEMENT 27 in the industry. As usual, this “consumer protection” measure wound up hurting consumers.

Senior Research Fellow James Gattuso had argued vociferously against net neutrality since it was first proposed. It was fitting, then, that FCC Chairman Ajit Pai chose Heritage as the place from which to release his draft decision repealing the rule.

In another promising development, the House passed a bill that would actually do what liberals said the Dodd-Frank Wall Street Reform and Consumer Protection Act would do: fix what caused the 2008 financial crisis. Reform is needed because Dodd-Frank did nothing to reduce the overregulation that created the crisis or reduce the likelihood that taxpayers would be stuck with the bill for bailing out “too big to fail” financial institutions in thenext crisis.

The House-passed bill, the Financial CHOICE Act, would create more stable markets. That’s because it incorporates many solidly researched recommendations put together by Dr. Norbert Michel, director of our Center for Data Analysis. In fact, the entire bill represents years of work between Rep. Jeb Hensarling, R–Texas, Heritage, and several allied think For his tireless work on the front lines of the repeal tanks. We’ve taken apart Dodd-Frank, title by title, and come Dodd-Frank movement, CQ Roll Call named Dr. up with ways to end “too big to fail” once and for all. Norbert Michel a “Rising Star of 2017”—one of seven “advocates to watch.” The essence of that work was captured in The Case Against Dodd-Frank, a 200+ page critique of the 2010 law. Dr. Michel groups have used out-of-court settlements to skirt normal edited that book, contributing several chapters as well. rules of the regulatory process and to influence the scope and pace of environmental regulations. Heritage analysts had Government Reorganization Project long urged an end to such backroom dealings. In February, President Trump issued an Executive Order direct- ing federal agencies to come up with their own plans to down- On the energy front, the president and Congress began size. But there is little reason to believe that federal agencies are unwinding burdensome restrictions on access to abundant capable of thoroughly honest self-assessments, which is why the energy resources almost immediately. The administration president asked Heritage to develop a benchmark plan he could okayed the long-delayed construction of the Dakota Access use to judge the plans coming from the various agencies. and Keystone XL pipelines. It also opened up huge tracts of federal lands and offshore locations to energy exploration In June, Heritage delivered exactly that. Blueprint for and production. Heritage had advocated all of these actions Reorganization: An Analysis of Federal Departments and for years. Agencies spotlights the redundant, wasteful, and inefficient programs of 22 different federal agencies and provides Undoing Over-regulation recommendations for either eliminating or combining them. The Trump administration withdrew or delayed 1,500 pro- The goal: to give Americans a leaner, more efficient federal posed regulations. One of its most controversial actions was government that’s focused more on performing core constitu- reversal of the FCC’s “net neutrality” rule. That rule required tional missions than on serving special interests. broadband networks to treat all communications and all customers alike—no discounts, no priority-service plans, Armed with these suggestions, Secretary Ryan Zinke initiated no exceptions. a major reorganization of the Department of the Interior. And Heritage-inspired reorganizations continue apace at the State Under the guise of “fairness,” the rule stifled competition Department, the Department of Energy, and the National among broadband providers and all but eliminated innovation Security Council. HILLS DAVID

28 THE HERITAGE FOUNDATION | heritage.org ANNUALANNUAL 20172017REPORTREPORT

heritageaction.com

President Trump signs a landmark tax reform bill, providing $1.5 trillion in tax relief, on Dec. 22. The measure adhered closely to the “principles for tax reform” articulated early in 2017.

onsequential conservative policy victories do not occur spontaneously in any political Cenvironment. They arise from years of policy development, followed by careful cultivation of legislative coalitions. The incredible successes of 2017 were possible both because the American people rose up in defiance of the political establishment, cultural elites, and media pundits, and because Heritage Action had put in the time, laying the legislative groundwork.

Tax Reform reported, Heritage Action delivered “a ‘congressional In early August, when almost no one thought tax reform boarding pass’ to Republicans” headed to their annual would happen, Heritage Action CEO Michael A. Needham retreat.” Its message: abandon the concept of revenue-neu- told Bloomberg TV: “It will be by the end of the year.” Sure, tral tax reform. there were plenty of legitimate reasons for the dominant skepticism. Congressional Republicans had stumbled badly Heritage Action also led the drive to cap the federal SALT out of the tax-reform gate, proposing a Border Adjustment (state and local tax) deduction. That reform helped level the Tax and suggesting tax reform had to be revenue neutral. playing field for taxpayers in low-tax states, who had been Tax reform looked like a non-starter—until Heritage Action effectively subsidizing tax-and-spend governments elsewhere. helped remove both of those deal-killers. One creative tactic: Heritage Action tapped its grassroots As the Washington Examiner noted, border adjustment tax network to line up nearly 150 real estate professionals to sign advocates were holding firm—and the larger reform pack- a letter urging an end to the SALT deduction. (The Left had age going nowhere—until “conservative advocacy groups claimed that capping SALT deductions would “destroy” the with grassroots credibility, such as Heritage Action” rallied real estate market.) Then, on one of his regular “Fox News their activists in opposition. That marked the beginning Sunday” appearances, Needham highlighted the letter and

MIKE THEILER/SIPA/NEWSCOM of the end for that misguided idea. Similarly, the Examiner warned that “every single corrupt force of the status quo in

PORTIONS OF THIS PUBLICATION WERE PROVIDED OR RELATE TO, AND WERE PAID FOR BY, HERITAGE ACTION FOR AMERICA.

A SEASON OF GROWTH, A YEAR OF ACHIEVEMENT 29 And when Senate Republicans did hold the line on the Garland nomination, it made the issue a central theme of the 2016 campaign. That, in turn, produced a mandate for Judge Gorsuch and many other conservative appointments made by President Trump in his first year. Deregulation, Finally The Trump administration’s deregulatory effort has been so far-reaching that The Heritage Foundation was forced to rename its annual “Red Tape Rising” report. In 2017, it became “Red Tape Receding.” Heritage Action pushed for As daughter Ella and wife Mary (FAR LEFT) look congressional involvement in that process as well, through on, Russell T. Vought, former vice president of Heritage Action, fields questions at a June 7 the use of the Congressional Review Act. hearing regarding his nomination to serve as deputy director of the Office of Management and Budget. As The Washington Post noted, House Republicans were finally “pushing full speed ahead … encouraged by conservative activist groups” to finally deliver on their deregulatory Washington” would be coming out to “protect their little promises. And none pushed harder than Heritage Action. carve out” in the tax code. It paid off. Congress used the law’s disapproval process 14 Heritage Action was also an early proponent of eliminating times in 2017, whereas it had been used only once in the the “tax penalty” for individuals who opt to go without previous 20 years. And thanks to the provisions of the law, no coverage rather than purchase over-priced coverage on the future administration can reimpose any of those disapproved Obamacare exchanges. That position was not only good regulations without prior approval from Congress. health care policy, it also opened up additional room for tax cuts. Heritage Action was also instrumental in eliminating Staffing Congress and the Administration the so-called “bubble rate” and achieving a major education The list of former Heritage Action staff holding key positions policy victory with the expansion of 529 educational sav- in Congress and the administration grew throughout the year. ings vehicles. Former Vice President Russ Vought was selected to be deputy director of the Office of Management and Budget. He was joined Supreme Court there by two other Heritage Action staffers, one of whom— On Jan. 21, 2017, President Trump nominated Neil Gorsuch Jessica Anderson—serves as the agency’s associate director. to serve on the U.S. Supreme Court. For Heritage Action, the fight to get a conservative into the court’s open seat had begun Meanwhile, some of our former grassroots managers left in a year earlier—even before there was an opening. 2017 to take lead roles in 2018 campaigns back home. Wade Miller is a senior official in a Texas Senate race, and Stephen A March 2016 Washington Post article previewing the Siao is running a congressional campaign in his home state looming battle over President Obama’s final Supreme Court of Tennessee. nominee, Merrick Garland, noted that Heritage Action had been “laying the groundwork for the current battle” since All the while, Heritage Action alumni continued to fill posts the beginning of the year, urging conservative senators on Capitol Hill, among them: chief of staff for Rep. Ron to block confirmation of several other Obama appointees. DeSantis, R–Fla.; deputy chief of staff for Rep. Ted Budd, Those earlier nominees were confirmed—as Heritage R–N.C.; and legislative directorships for three representa- Action expected. But Heritage Action was playing the tives—Gary Palmer, R–Ala., Dave Brat, R–Va., and Budd. long game. Other alumni are scattered across various Congressional com- “Part of the reason we were so active early on was the thought mittees and personal offices. It all deepens Heritage Action’s of, something could happen on the Supreme Court and it ever-growing network on Capitol Hill. would be a defining moment for the Republican Party in how it responded,” Heritage Action’s Dan Holler explained to the Never Too Late to Get It Right Post reporter. “It was time to begin framing the debate on While 2017 contained once-in-a-generation victories like

judicial nominees.” tax reform, it was not without missed opportunities. Chief JOHN HARRINGTON

30 THE HERITAGE FOUNDATION | heritage.org ANNUAL 2017 REPORT among them was the failure to repeal and replace Obamacare. didn’t mean the fight was over. But it did mean that Heritage Heritage Action’s laser-like focus on Obamacare’s cost-raising Action would take the fight to another arena. regulatory infrastructure brought the issue into focus for the conservative movement and the larger legislative debate. Our future efforts to repeal and replace Obamacare will focus on unburdening states of federal regulations that hobble their As expected, Heritage Action made the case everywhere—in ability to adopt innovative, free-market health reforms that the halls of Congress, in the White House, on television, and can make affordable, high-quality health care available to in print. Ultimately, the House moved to address Heritage their citizens. Action’s concern through an amendment offered by Rep. Mark Meadows, R–N.C. This cleared the way for the Obamacare “The challenge,” as Needham said in late 2017 on “Fox News repeal bill to pass the House with near unanimous support Sunday,” “is finding a way … to get the Republican party to from House conservatives. congeal around a plan that follows through on promises that they would repeal Obamacare.” Heritage Action remains opti- The bill failed when Sens. John McCain, R–Ariz., Lisa mistic as it builds a coalition inside and outside of Congress Murkowski, R–Alaska, and Susan Collins, R–Maine, joined to return regulatory authority back to the states and control the Democratic caucus’ unanimous opposition to repeal. That back to the individual.

Tom Balek : Sentinel Strong

om Balek is a self-employed real estate investor Tand musician in Lake Wylie, S.C. For years he had worked closely with Heritage Action. Then, with encouragement from his regional coordinator, James Quarles, Tom decided to take his advocacy role to the next level. He was determined to develop a relationship with his congressional representative, Mick Mulvaney.

After attending a town hall meeting, Tom and Rep. Sentinel Ruben Trevino (blue shirt) introduces Mulvaney got to know each other on a first-name himself to Rep. Ralph Norman, R–S.C., at Tom basis. Soon, they were working together to advance Balek’s BBQ social. conservative priorities in Congress.

Then came Donald Trump. In early 2017, he nomi- advance Heritage priorities and achieve conservative nated Mulvaney to head the Office of Management of policy victories. Budget. It was a positive move for the country, but it cost the constituents of South Carolina’s Fifth District Heritage Action sentinels play many critical roles, and a solidly conservative representative. one is building relationships with new members of Congress. Weeks after Rep. Norman took the oath It was a personal setback for Tom, as well. But he’s not of office, Tom and his wife Linda invited Norman and the kind of person to let set-backs stop him. several members of his staff to their home for a BBQ social to meet with other sentinels and conservative Taking an active interest in the upcoming special activists in the area. election to replace Mulvaney, Tom quickly developed a relationship with then-candidate Ralph Norman. They were able to hear about Rep. Norman’s early Within a few months, Norman won a contested impressions of Congress, discuss conservative policy primary and the general election to become the new priorities, and preview upcoming legislative fights. representative of the Fifth District. Thanks to Tom, Rep. Norman was able to build relationships with Heritage Action Sentinels and see Tom continues to be the strong conservative voice firsthand the support he had for championing conser- in the state, working directly with Rep. Norman to vative causes in Congress.

A SEASON OF GROWTH, A YEAR OF ACHIEVEMENT 31 Thomas Binion Director, Congressional and Executive Branch Relations

Promoting Conservative Policy

n September 2016, Heritage Founder Edwin J. Feulner and Ronald Reagan Distinguished IFellow Becky Norton Dunlop both took second jobs and began reporting to work at a new address: Trump Transition headquarters on Pennsylvania Avenue. Each day, they arrived with boxes full of research materials: volume after volume of Blueprint for Reform and Blueprint for a New Administration. They also brought files full of resumes and recommendations of conservatives eager to assist a new president.

The books, part of our Mandate for Leadership series, identified their policy reports for the new president and to provide them critical reforms Executive Branch officers could implement on to candidates preparing to serve in the incoming administration. their own, without seeking congressional approval. Feulner and Dunlop had to keep replenishing the book stock, because tran- In January, then-White House Director of Budget Policy Paul

sition team members wanted to review them as they prepared Winfree distributed copies of Blueprint for Balance to career HILLS DAVID

32 THE HERITAGE FOUNDATION | heritage.org ANNUAL 2017 REPORT

Resource Bank turns 40. LEFT: Vice President Bridgett Wagner welcomes more than 430 conservative leaders to the 40th annual Resource Bank Meeting. Featured speakers included: (CLOCKWISE FROM TOP RIGHT) Kentucky Gov. Matt Bevin, syndicated radio host Dennis Prager, EPA Administrator Scott Pruitt, and former House Speaker Newt Gingrich.

officials at the Office of Management and Budget. Months out short- and long-term legislative priorities—a process earlier, as director of our Roe Institute for Economic Policy that often involves open debate of the merits of a particular Studies, Winfree had overseen the compilation of this plan to proposal or strategy emerging on the Hill. balance the federal budget within 10 years. As he passed out the copies, he also issued instructions: “Incorporate as many His team also organized two weekly luncheons: one for conser- of these recommendations as possible into the president’s vative communicators, the other for House legislative directors. budget proposal.” In both venues, participants identify specific information needs and strategy options for advancing conservative policy proposals. With the research done and in the right hands over at the Executive Branch, it was time to “sell” those recommenda- At mid-year, Binion became a regular columnist for The Hill, tions to Congress. That assignment fell largely to Thomas the “insider” publication most widely read by Washington’s Binion, our director of congressional and Executive Branch political movers and shakers. It proved an invaluable vehicle relations. And Binion and his team worked wonders. for publicly promoting Heritage policy recommendations to our key audiences. Moving Conservative Solutions to the Front Lines In January, they hosted the Conservative Members Retreat In the course of the year, Binion’s team arranged dozens of in New York City. The event drew some 50 conservative policy briefings by Heritage experts for members of Congress, members of the House. The agenda focused on the two biggest their staff, and first-time candidates who will run for office tasks facing the first session of the 115th Congress: repealing in 2018. They also hosted occasional dinners for members of Obamacare and reforming the tax code. Congress, such as the Oct. 3 dinner where Under Secretary of the Treasury David Malpass joined 11 conservative members Upon their return to D.C., Binion’s team got down to the day- to discuss tax reform. to-day promotion of our policy agenda. Every week, Binion hosted the “Monday Group,” a cross-section of conservative Of course, everyone knows how the push for tax reform decision-makers representing Congressional leadership turned out. But that was just one of many conservative vic- and other Hill offices as well as outside conservative policy tories realized in 2017. By year’s end, the administration had

NATHAN ARMES NATHAN and advocacy groups. At these meetings, participants map embraced 208 of our Mandate policy recommendations.

A SEASON OF GROWTH, A YEAR OF ACHIEVEMENT 33 TOP: Heritage’s Summer 2017 Intern Class on a much anticipated tour of the White House. BOTTOM LEFT: Elle Rogers (FAR LEFT) and Meridian Paulton represent Heritage in a debate with CATO Institute interns moderated by National Review editor Charles C. W. Cooke. BOTTOM RIGHT: Interns Dylan Brandt, Emma Meshell, Lindsey Curnutte, and Maddie Crick attend Heritage’s “Welcome to Washington” networking event in June.

Building the Conservative Movement percolating at the state level and rising leaders in the Heritage has been referred to as “the mother church” of the Conservative Movement. Conservative Movement. Perhaps Bridgett Wagner should be called its “mother hen.” In her 36 years with Heritage, Wagner Participants voted Kentucky Gov. Matt Bevin “most valuable has not only met virtually everyone in the conservative move- speaker,” but he faced tough competition from other keynot- ment, she has introduced every one of them to someone else ers such as former House Speaker Newt Gingrich, Rep. Jim in the movement. That’s how a movement builds. Jordan, R–Ohio, and talk radio host Dennis Prager.

In 2017, Heritage named Wagner its vice president of policy Developing—and Placing—Talented Conservatives promotion. From that post she oversees our outreach to the Heritage’s Truluck Center for Leadership Development White House, the Hill, and allied organizations in the con- coordinates a variety of professional development pro- servative movement. She also oversees our educational and grams and talent recruitment and placement programs to talent development initiatives—from Lectures & Seminars to strengthen the Conservative Movement. the Young Leaders Program. Director Kristine Bramsen and Job Bank Manager Kyle A highlight of the year came in May, when more than 430 Bonnell regularly provide staffing recommendations for conservative leaders traveled to Colorado Springs to newly elected governors and members of Congress. Both were participate in our 40th annual Resource Bank Meeting. especially busy at the end of 2016 and early in 2017 serving on “Rise to the Challenge” was the theme of the gathering, the Presidential Appointments team of the Trump Transition. which featured informative and inspiring presentations at the general sessions, augmented by breakout sessions The Job Bank matches Heritage interns and other talented

that acquainted attendees with innovative policy ideas young conservatives just starting their careers with exciting HUGHES BRITTAIN INSTITUTE; CATO FOUNDATION; THE HERITAGE

34 THE HERITAGE FOUNDATION | heritage.org ANNUAL 2017 REPORT

opportunities on Capitol Hill, within the Executive Branch, or among conservative allies. In 2017, the Job Bank connected 60 “first-timers” with jobs in these sectors. It also helped more than 30 experienced conservatives land even better jobs in offices where they can help keep the movement pushing forward.

How impressive is that? Well, for the third consecutive year, LinkedIn recognized Heritage as a Top 100 “Power” recruiter.

Of course, the Truluck Center also works to help Heritage and Heritage Action staffers achieve their full potential. In 2017, the Center graduated 45 emerging leaders from its “Principles Meet Emily Hall Heritage Intern (Center for Legal of Leadership” training series. and Judicial Studies)—Summer 2017

To reach even more staff, the center launched “Degreed,” a new online learning platform that provided customized, “An unabashed conservative at the world’s most small-group information-sharing sessions for 100 colleagues. famous university.” That’s how the Boston Herald describes Emily Hall. Reaching the Hill and Beyond Certainly, the Harvard Senior is not one to hide Heritage “trained up” hundreds of conservatives on the Hill the principles she holds dear. On campus, Emily in 2017, offering four programs designed to build the bench proudly serves as president for the Network of of the conservative movement and make conservative con- Enlightened Women and vice-president of the gressional staff members even more effective. This multi- Harvard College Republicans. tiered fellowship approach follows staffers throughout their careers on Capitol Hill. No matter what position an indi- While Emily finishes work on her degree in vidual currently holds, there’s an educational opportunity Government, she continues to moonlight as a cor- tailored specifically for him or her. respondent for Campus Reform. And her reports on liberal bias and violence on campus have earned her The first step on this journey is the Heritage Congressional a national audience. She has appeared several times on the FOX News network (photo above) to discuss Fellows Program. Established 15 years ago, HCF teaches junior issues such as the erosion of free speech on campus. staffers the first principles of conservatism and offers both policy discussions and job skills development to prepare them for Today, too many colleges seem more interested in effective careers on and off Capitol Hill. In 2017, 55 Hill staffers maintaining political correctness than in teaching— graduated from the nine-month-long program, which is co-man- much less, defending—First Principles. But with aged by our B. Kenneth Simon Center for Principles and Politics. Heritage-educated and dedicated young conservatives like Emily holding fast, there is reason to In 2017, we launched a brand new program targeted to HCF hope for a better future. graduates who are taking the next step in their career. “Take that Hill: Leadership Skills for Congressional Staff” is a six-part leadership training series for junior Capitol Hill administration Homeland Security Adviser Fran Townsend staff. The inaugural class of 24 was led by three distinguished and former NSA Director Gen. Michael Hayden. Participants leaders from our Center for National Defense: Dr. Steven also engage in projects that help them incorporate America’s Bucci, retired Army Lt. Gen. Thomas Spoehr, and Senior traditions, values, and worldwide responsibilities into a Research Fellow J. V. Venable, a former commander of the Air grand strategy. Force Thunderbirds and author of Breaking the Trust Barrier, a book on how to manage high-performance teams. In October, Marshall Program participants travelled to the Virginia Military Institute to participate in the annual Yalta sim- For those who have specialized in a career in foreign policy ulation. The program concluded in November with a graduation or national defense, our George C. Marshall Fellows Program, dinner and discussion of the challenges of statecraft with the coordinated by Heritage’s Davis Institute, steeps future for- Polish ambassador and the Swedish military attaché. Previous eign policy and national security leaders in conservative ideas. graduates of this program now serve in senior positions in

FOX NEWS FOX In 2017, featured outside speakers included former Bush Congress, the Trump administration, and the private sector.

A SEASON OF GROWTH, A YEAR OF ACHIEVEMENT 35 And, in 2017, we strengthened the program even further, We know the program works. Among the ranks of former tying in with the Daniel Morgan Graduate School of National Heritage interns are Sen. Tom Cotton, R–Ark., (Heritage class Security, a new graduate school providing professional of 1997), political strategist Ford McConnell (Heritage, 2001), and executive education to those working—or aspiring to Weekly Standard Editor-in-Chief Stephen Hayes (Heritage, work—in the national security field. One side benefit of this 1993), and Will Dunham (Heritage, 2008), policy director for partnership: we were able to present the first annual Daniel House Majority Leader Kevin McCarthy. Morgan Lecture, “Defeating Terrorism in the Age of Trump,” by Dr. Sebastian Gorka. We graduated 19 Marshall Fellows What’s our formula for success? Yes, the interns get hands-on in 2017. experience working for a conservative policy institute. But they get much more than that: a lecture series on First Our Feulner-Weyrich Fellows Program provides leadership Principles, weekly policy briefings from top experts, field trips, training to the most senior-level congressional staff. These reading groups, and skills-development workshops. Capitol Hill influencers already know the lay of the land, so this master class is designed to put sharp edges on their oper- In 2017, our interns were also able to experience several ational, legislative, and strategic skill sets. One highlight of rather special events. Our spring class of 60 interns, for the 21-session program: a retreat to Maryland’s Eastern Shore, example, attended inauguration parties and sat in on where participants engaged in an intense, simulated legis- nomination hearings. lative negotiation. In another session, the fellows received a productive and collaborative briefing from members of the Our fall class of 57 interns witnessed presentation of the White House Legislative Affairs staff. Distinguished Intern Alumni Award to Marjorie Dannenfelser, president of the Susan B. Anthony List. They also made the Young Leaders Program short trip to the Supreme Court, where they met with Justice Our Young Leaders Program is a 12-15 week internship for Clarence Thomas on the same day oral arguments were deliv- smart, conservative college students and recent graduates. ered in the Masterpiece Cakeshop case. The program prepares them to move into positions of influence in government, corporate boardrooms, and academia, A total of 184 young people participated in the 2017 Young where they will help rebuild America according to the vision Leaders Program. Two of them are profiled elsewhere on of the nation’s Founders. these pages. All of them have a bright future.

Meet Harrison William P. Floyd Heritage Intern (Marketing)—Fall 2017

arrison William Prescott Floyd volunteering at a veterans’ service After graduation, H.W. hopes Hcomes from a family with a organization, he decided he should to work on Capitol Hill, putting history of service in the Armed be fighting on the Hill instead of to good use the leadership Forces. So it came as no surprise inside a ring. skills he learned in the Marine when he enlisted in the U.S. Marine Corps—and in Heritage’s Young Corps directly out of high school. Currently enrolled at The George Leaders Program. Washington University, H.W. is During his 10 years of service, he pursuing a master’s in Legislative completed three combat deploy- Affairs. In his spare time, he serves ments in the Infantry, trained troops on the fiduciary board of the HillVets in Combat Marksmanship at Parris Foundation and is the Campus Island, and served as an Information Ambassador for FourBlock, a Operations Planner and Martial Arts nonprofit that helps veterans launch Instructor Trainer at Marine Corps new careers that match their calling Base Quantico in Virginia. and maximize their potential. He is also the liaison for veterans serving After the military, H.W. planned to in state legislatures at Veterans pursue a career as a professional Campaign and the Managing Partner mixed martial artist. However, after at Arrows & Olives. WILLIS BRETZ

36 THE HERITAGE FOUNDATION | heritage.org ANNUAL 2017 REPORT

2017 Named Interns Caesar Arredondo Interns Jan Hair Intern Ray Foundation Interns Maiya Clark, University of Southern California Katherine Gwyn, Clemson University Elizabeth Adadi, Florida International University Diana Guevara, Florida International University Samantha Cosme, The George Lauren Hand, The Catholic University of America Haskell Robinson Interns Washington University Helaina Hirsch, Patrick Henry College Jonathan Iwaskiw, University of Virginia Emily Washler, University of Florida Jennifer Montazzoli, Grove City College Jacob Lubenow, University of Wisconsin – Madison Seth Moreida, Tufts University Rachael Wolpert, Trinity University Lisenne Rockefeller Intern Nicholas Gerstbauer, University of Notre Dame H. N. and Frances C. Berger Marjorie W. Herrick Intern Foundation Interns Mike Muller, Georgia College & State University Jordan Saunders Intern Abigail Barnes, Cedarville University Christine Roe, Southern Methodist University Chance Fletcher, Princeton University Herbert Hostetler Intern Zachary Olden, Stockton University Nick Goracy, Johns Hopkins University Joe H. Scales Interns Valerie Oppenheim, Binghamton University Madison Crick, University of Texas at Austin Meridian Paulton, Patrick Henry College Chet and Patricia Houston Intern Harrison William Floyd, The George Elle Rogers, The King’s College Eric Lendrum, University of California, Santa Barbara Washington University Lauren Konkol, The Southern Baptist Bruce E. Bowen Intern David A. King Interns Theological Seminary Hugh Danilack, Dartmouth College Chase Flowers, Washington and Lee University Sarah Ma, Rutgers University Greg Sheehan John and Barbara Bruning Intern Meese Center Interns Christian Costa, Clemson University Kevin Kline Intern Lawrence Brett, Wake Forest University Sydney Combs, University of Arkansas Caroline Savoie, Franciscan University of Steubenville Elizabeth Mallinckrodt Bryden Intern Caleb Ecarma, North Greenville University Kevin Kookogey Shining City on a Hill Interns Meese Center Intern Caleb Beavers, University of Michigan David V. Burgett Interns Meagan Devlin, University of California, Santa Barbara Charles Busch, The Catholic University of America Emily Adamson, Augustana University Michael Marn, The Catholic University of America Madison Laton, Duke University Kuchta Family Intern Matthew Pelyhes, Hope College Cheyenne Plott, Hebrew University Grant Strobl, University of Michigan David Joseph Burke Intern Laura Cermak, Christendom College David and Rebecca Laschinger Intern The Sontheimer Interns Andrea Jones, Liberty University James Leahy, University of Alabama Mary H. Campbell Foundation Intern Blake Utz, Western Michigan University Gaby Anciola, Texas A&M University John L. LeRoy Interns Brittain Hughes, Duke University The Steen Intern Carter and Moyers Intern William Turton, Clemson University Jacob Richards, Arizona Christian University Dylan Brandt, University of Colorado— Colorado Springs Robert Mair Col. Charles B. and Destry Edwards, Bob Jones University Meese Center Interns Sally G. Stevenson Intern Nicole McGovern, St. John’s University Benjamin Janacek, Lafayette University Andrew Nagode, The Catholic University of America Abigail Slagle, Miami University Richard Earl Carter Meese Center Intern Sydney A. Swensrud Foundation Intern Krista Chavez, American University Robert S. and Janet L. Miller Elad Vaida, Harvard University Foundation Interns Gene D’Agostino Meese Center Intern Alexa Acquista, University of Dallas George W. Tippins Intern Kaitlyn Finley, University of Science and Arts Margaret Annunziata, The George Harrison Garrett, Bryant University of Oklahoma Washington University Ceara Casterline, Notre Dame College Tom Tracy Intern John R. and Margrite Davis Paul Choix, Boston College Logan Cook, University of Richmond Foundation Intern Mark Feld, Farmington State College Jordan Bernstein, University of Virginia Hanna Hiel, Clemson University Ron Weinel Intern Gabriel Ozuna, Yale University Olivia Davis, University of South Florida Gary L. Dawson Interns Garrison Rutledge, Samford University Marie Brown, Roanoke College Mitchell Siegel, Duke University James A. West Intern for National Defense Robert Ordway, Valparaiso University Mimi Teixeira, University of Notre Dame in the Davis Institute David Chinn, Patrick Henry College Rebecca Eddy de Broekert Intern Sylvia Peak Intern Michael Rury, Williams College Katherine Littel, University of Pennsylvania Samuel L. Westerman Foundation Interns Erin Bardin, Western Kentucky University Franklet Intern Guido and Sue Pichini Intern Robert Morrison, Virginia Tech William Tresch, University of Texas at Dallas Nicole Torchio, University of Pittsburgh William M. Young Berniece and William Grewcock Interns Pilgrim Foundation Interns Meese Center Intern Karl Keyzer-Andre, Hillsdale College Kyle Ferrebee, Wingate University Emily Hall, Harvard College Margaret Smith, Hillsdale College Kelly Cousoulis, The Catholic University of America Cassidy Syftestad, Hillsdale College The Robert and Audrey Zinser Jackson Ventrella, Hillsdale College Doris and Richard Pistole Intern Meese Center Intern Logan Williams, Doane University Diana Valentine, Miami University Charles Melcombe, Pepperdine University

A SEASON OF GROWTH, A YEAR OF ACHIEVEMENT 37 Genevieve Wood Senior Communications Advisor and Senior Contributor to The Daily Signal

Communications

ven as a child, Genevieve Wood was a news junkie. She read voraciously—everything Efrom the daily Texarkana Gazette to her father’s Policy Review. Nightly television news broadcasts were must-see TV. Her favorite program: NBC’s “Today Show” (then still a news program). Fast-forward to her senior year at the College of Charleston. Three years later, in 1994, she decided she’d had enough of Hurricane Hugo had hit the coastal South Carolina town covering the news. She wanted to use her communications bringing devastation—and “Today Show” host Jane Pauley to skills to promote the causes and ideas she believed in. cover it. So, it was off to Washington, D.C., where she worked for vari- The NBC crew needed a “runner.” Wood got the job and ous cause-oriented organizations—from the Family Research ultimately parlayed that experience into a role with the NBC Council to the Republican National Committee—before

news team in New York. landing at Heritage in 2006. HILLS DAVID

38 THE HERITAGE FOUNDATION | heritage.org ANNUAL 2017 REPORT

With the Obamacare debate underway in the House, the Heritage Communications team convened a roundtable discussion of conservatives’ drive for full repeal. The Feb. 8 event attracted 23 Capital Hill reporters and featured speakers such as (FROM LEFT) Heritage health policy expert Alyene Senger (now with the Senate Republican Policy Committee), Rep. Jim Jordan, R–Ohio, Rep. Mark Meadows, R–N.C., and Sen. Mike Lee, R–Utah.

Today, Wood pulls double duty as both senior communi- nn Mass Ave—insightful analysis from Heritage experts on cations advisor and senior contributor to The Daily Signal, the policy debates happening in Washington. Heritage’s multimedia news organization. And she’s back “on nn SCOTUS 101—Heritage legal experts Elizabeth Slattery camera” as often as ever—not just as an interviewer, but as a and Tiffany Bates explain what’s happening at the respected commentator and spokeswoman. Supreme Court. nn Problematic Women—The Daily Signal’s Kelsey Harkness In 2017, her video commentary on how communities came and The Federalist’s Bre Payton showcase strong together after Hurricane Harvey received an incredible 10 conservative women, current events, and the hypocrisy of million views. A 30-second excerpt from her interview with liberal feminists. Kentucky Gov. Matt Bevin on the topic of gun safety garnered nn Right Side of History—The Daily Signal’s Jarret Stepman 14 million views. and Fred Lucas examine historical events and push back against the Left’s rewriting of history. “I truly believe I have the best job in the conservative movement,” Wood says. “I get to meet really smart people, really We also produce a daily podcast, The Daily Signal. Hosts powerful politicians, even celebrities. Katrina Trinko and Daniel Davis update listeners on each day’s top stories and interview Heritage experts who can “Best of all, I get to ask them questions that others would love share new insights into what’s happening and what’s ahead. In to ask—questions that help people understand what’s going on 2017, Heritage entered a partnership with Ricochet network in the culture wars and the policy battles on Capitol Hill—and to share all five podcasts with an even larger audience. explore how those debates will affect the quality of our lives and the character of our society.” 202,147,509 From Videos to Podcasts Heritage and Daily Signal combined video views—up from 52,000,000 in 2016 Of course, Wood isn’t the only video “star” at Heritage. Our Digital team has been producing video news and opinion 1,424,154 pieces for years, and in 2017, they took production to another monthly unique visitors to DailySignal.com level—increasing the number and up-grading the quality of our videos. 1,023,765 active Daily Signal e-mail subscribers People noticed. By year’s end, Heritage and Daily Signal 808,282 videos had earned over 200 million views. Facebook fans up from 662,487 in 2016

The team also raised Heritage’s profile in the increasingly 52,500 popular medium of podcasting. We now produce and promote Twitter followers, up from 40,000

MAGGY SMITH MAGGY four weekly podcasts:

A SEASON OF GROWTH, A YEAR OF ACHIEVEMENT 39 After reading a Daily Signal story about Marjorie Weer’s battle with Obamacare, White House staff invited her and her son, Monty, to meet with Vice President Pence in June (TOP RIGHT) and President Trump in July (BOTTOM RIGHT). At both events, Weer recounted her struggle to get Monty, who suffers from spina bifida, the care he requires.

The Daily Signal: Making a Mark Always looking to innovate, The Daily Signal launched a The Daily Signal, Heritage’s online news and opinion outlet, new video series, “Underreported, with Kelsey Harkness.” attracted millions of engaged viewers in 2017. But numbers As the name suggests, it covers stories that the main- don’t tell the full story. Just as important was the matter of stream media choose to ignore. The first installment was a who was viewing. mini-documentary addressing many misconceptions held by the general public (and the media) regarding fire- Grace-Marie Turner, president of the Galen Institute, is one arms suppressors. regular reader. She finds the content insightful and useful. After all, she cited The Daily Signal’s reporting on Obamacare Another installment told how Donald Trump, as a private in her testimony before the House Budget Committee. citizen, saved Central Park’s iconic Wollman Skating Rink in the 1980s. It’s the kind of story that doesn’t fit the liberal Another satisfied customer: former White House Press narrative—so the mainstream media won’t touch it. The Daily Secretary Sean Spicer. In an interview with Fox News’ Sean Signal did. Hannity, he recommended The Daily Signal as an excellent alternative to mainstream media. The “Underreported” series was just a small part of the work done by Harkness, a senior news producer at Heritage. Indeed, The Daily Signal seems to enjoy a loyal readership in And the quality of her work did not go unrecognized. The many wings of the White House. West Wing Reads, the daily Colorado-based Steamboat Institute named Harkness its summary of what the White House is reading—and wants 2017 Tony Blankley Fellow—a recognition of her “gift for others to read—circulated more than a dozen Daily Signal communicating conservative policy in a language all of us can

news reports and summaries. understand: human emotion.” THE WHITE HOUSE

40 THE HERITAGE FOUNDATION | heritage.org ANNUAL 2017 REPORT

The Daily Signal: Reporting and Commentary That Makes a Difference

uideStar is a highly influential nonprofit. It Gcollects information about other nonprofits to help guide the giving decisions of philanthropists UKRAINE and philanthropic organizations across the country.

But in 2017, GuideStar went beyond information collection. It labeled dozens of conservative nonprofits as “hate groups.” The absurd label reflected “research” done by the far-Left Southern Poverty Law Center.

Daily Signal reporter Rachel del Guidice exposed the calumny for what it was. Her reporting was featured on the Drudge Report, sparking howls of outrage on radio talk shows and other conservative media. Within a month, GuideStar conceded its error and removed the “hate” labels.

Rachel del Guidice Mike Gonzalez Daily Signal Reporter Senior Fellow

efore President Trump took office, the U.S. BCensus Bureau announced plans to add a new demographic category—Middle Eastern/North African (MENA)—to its 2020 survey. Recognizing it as another bid to divide Americans by promoting identity politics, Senior Fellow Mike Gonzalez went on the media warpath.

In commentaries for The Daily Signal, The Wall Street Journal and National Review, he warned of the dangers of creating a new ethnic group. The public responded. Within weeks, comments on Regulations.gov increased seven-fold and MIDDLE PICTURE: Nolan Peterson, The Daily Signal’s switched from mostly supportive to all opposed to foreign correspondent in Ukraine, tours a front- the Census proposal. line trench in Shyrokyne as he investigates the impact of modern-day trench warfare on On Jan. 26, 2018, the Bureau announced it no Ukrainian troops (April 2017). BOTTOM PICTURE: longer planned to add a MENA category to the Peterson (LEFT) shares a trench bench—and a 2020 census. conversation—with a Ukranian soldier. CORYNNE STARESINIC; ATLANTIK BRÜCKE; RUSLAN GANUSHCHAK; LIDIA KHAUSTOVA GANUSHCHAK; RUSLAN BRÜCKE; ATLANTIK STARESINIC; CORYNNE

A SEASON OF CHANGE, A YEAR OF ACHIEVEMENT 41 By year’s end, we were putting the finishing touches on the E.W. Richardson Building(FAR RIGHT), the fourth building in Heritage’s Freedom Center complex. When opened in May 2018, the Richardson Building will provide housing for over 60 interns each semester, allowing us to expand even further our outreach to—and influence on—America’s next generation of leaders. People Are Policy

eritage is home to some of America’s most thoughtful and insightful policy analysts. And we’ve been blessed with donors Hwho are committed to making sure that we can continue to attract and retain top-flight scholars. Here are the fellowships— and the analysts they support—that played such a crucial role in our 2017 successes.

Jay Kingham Senior Joseph C. And Elizabeth John, Barbara, and Victoria Fellow in International A. Anderlik Fellow Rumpel Senior Legal Fellow Regulatory Affairs Jennifer A. Marshall Alden F. Abbott Brett D. Schaefer

William E. Simon Senior AWC Family Mark A. Kolokotrones Fellow Research Fellow in American Foundation Fellow in Economic Freedom Principles and Public Policy David Azerrad, Ph.D. Amb. Terry Miller Ryan T. Anderson, Ph.D.

Chung Ju-yung Fellow Bernard and Barbara Lomas Will Skillman Fellow for Foreign Policy Studies Senior Research Fellow in Education Policy Edwin J. Feulner, Ph.D. Nile Gardiner, Ph.D. Lindsey Burke

Ed Gilbertson and Sherry Herbert and Joyce Lindberg Gilbertson Senior Margaret Thatcher Fellow Morgan Fellow Legal Fellow Robin Simcox Nicolas Loris John G. Malcolm

Marilyn and Fred Jay Van Andel Senior Analyst Guardabassi Fellow E.W. Richardson Fellow in Trade Policy in Media and Public Policy James Jay Carafano, Ph.D Bryan Riley Kenneth McIntyre

Grover M. Hermann Fellow Preston A. Wells, Jr. Fellow John Von Kannon Fellow in Federal Budgetary Affairs in Health Policy in Philanthropy Romina Boccia Edmund Haislmaier J.B. Horton DAVID HILLS DAVID

42 THE HERITAGE FOUNDATION | heritage.org ANNUAL 2017 REPORT

Ronald Reagan Distinguished Fellow Ronald Reagan Distinguished Distinguished Fellow in Conservative Thought Distinguished Fellow Emeritus Visiting Fellow Becky Norton Dunlop Lee Edwards Edwin Meese III Stephen Moore

Distinguished Fellows

nly‌ a select few of our scholars bear the title: what makes his autobiography, Just Right: A Life in Pursuit of ODistinguished Fellow. Heritage reserves that title to Liberty, such a fascinating and inspirational read. honor individuals who, in addition to their demonstrated Published in October, Just Right is the 25th book in commitment to rigorous research and conservative prin- Edwards’ literary canon. As Richard Viguerie has noted, ciples, have compiled a record of outstanding achievement Edwards is now the longest-serving “driving force” behind outside the think tank world. conservative thought and activism in the U.S.

In 2017, Heritage was home to four Distinguished Fellows. Edwin Meese III Just how distinguished is Edwin Meese III, our Ronald Becky Norton Dunlop Reagan distinguished fellow emeritus? Well, in 2017 alone he The plaque outside her office reads: “Becky Norton collected three new honors: the Distinguished Service Medal Dunlop, Ronald Reagan Distinguished Fellow.” But Dunlop’s from the Military Order of Foreign Wars of the United States, office is quite often empty. That’s because she’s across town, the Phyllis Schlafly Award for Excellence in Leadership giving policy and personnel advice to Trump administration from the Eagle Forum, and the Pacific Justice Institute’s officials. Or on the road, advising American conservative Founders Award. leaders. Or counseling pro-freedom organizations in the U.K., The former U.S. attorney general continues to be a the E.U., Israel, and Africa. prime mover of conservatism. He leads our biannual Legal For example, in 2017, she hosted the Environmental Strategy Forums as well as monthly coordinating meetings Leaders Conference, bringing EPA Administrator Scott of freedom-based public interest law groups. In March, he Pruitt together with 30 free-market environmental leaders convened a summit meeting of leading police chiefs and from around the nation. Then she was off to the AfriCANDO criminologists from across the country to discuss the current Conference on U.S.-Africa trade and investment, where she state of policing. Growing out of that meeting was a Heritage delivered a keynote speech stressing the benefits of free mar- Special Report, “Policing in America: Lessons from the Past, kets to all peoples. Think of her as Heritage’s global ambassa- Opportunities for the Future.” dor for the conservative movement. Stephen Moore Lee Edwards Distinguished Visiting Fellow Stephen Moore heads up our Project for Economic Growth. Throughout the year, he Lee Edwards has always been in the forefront of the worked closely with the White House and congressional struggle to restore America, to bring it back to its ancient moorings…. leaders to devise a tax reform plan that would maximize job —Ronald Reagan creation, wage increases, and economic growth. A syndicated columnist and frequent television commen- Dr. Lee Edwards is Heritage’s distinguished fellow in tator, Moore engaged in a non-stop media campaign stressing conservative thought. Reagan biographer Craig Shirley the need for lower tax rates, immediate expensing of all busi- has dubbed him “the unofficial historian of 20th century ness capital investments, and the elimination of special-inter- American conservatism.” est tax breaks and double taxation of foreign profits. But Edwards has done more than chronicle the conser- When the debate was over, Moore had carried the day on vative movement. He has lived it. His entire adult life has all major provisions. Within weeks, the economy was growing

DAVID HILLS DAVID been inextricably intertwined with the movement—which is at a pace not seen in years.

A SEASON OF GROWTH, A YEAR OF ACHIEVEMENT 43 More than 1,000 Heritage members, supporters, and allies welcomed President Donald Trump and key members of his administration to our annual President’s Club meeting in October. Heritage Members … Unwavering, Unshakable, Unstoppable

hroughout what was a year of incredible change—for America and for The Heritage TFoundation—our members kept their eyes on the goal: Stop the Left from thwarting the greatest conservative resurgence in 30 years; reclaim America; “drain the swamp!”

Their impact has been extraordinary. Time and again, And at the end of 2017, they warmly welcomed Kay Coles Heritage Foundation and Heritage Action for America mem- James as Heritage’s president-elect. bers stepped up when it mattered. The generosity of their giving continues to gratify and nn They helped get tax reform over the finish line in humble us. In 2017, our growing family of supporters, now December, giving all of America a much-needed more than a half-million strong, contributed more than economic boost. $119 million in gifts, pledges, and estate commitments to nn They sprang into action to get President Trump’s judicial Heritage and Heritage Action. They brought us within $55 and other nominees confirmed to positions throughout million of the ambitious, $750 million goal of our six-year the government. Reclaim America Campaign, which will come to a conclusion nn They put a stop to hundreds of bad Obama-era Dec. 31, 2018. environmental and energy regulations. nn They gave children struggling in failing schools a way out On the following pages, you will read about a few Heritage through education choice. members who have demonstrated both amazing generosity and sustained support over the years. But literally hundreds It is their giving—of time, talents, and financial support—that of thousands more stories—all of them inspiring—can be made The Heritage Foundation “the No. 1 think tank in the found among our members. world when it comes to impacting public policy.” That’s not Heritage talking. That’s the conclusion of a recent study by Their love of country, their belief in the American Dream, and

the University of Pennsylvania. their faith in Heritage inspire us every day. WILLIS BRETZ

44 THE HERITAGE FOUNDATION | heritage.org ANNUAL 2017 REPORT

Taking a break from touring the White House, Heritage members get a briefing from Interior Secretary Ryan Zinke in the South Court Auditorium of the Eisenhower Executive Office Building, Oct. 26.

2017 Heritage Foundation Founders

Chairman’s Circle Mr. and Mrs. Bayard Boyle, Jr. Mr. Paul J. Isaac Ms. Jeanne Haskell and AWC Family Foundation Lynde & Harry Bradley Mr. and Mrs. James R. Johnston Mr. Leonard D. Robinson Mr. Roger A. Brown Foundation Inc Mr. and Mrs. Mike L. Keiser The Roe Foundation Mr. and Mrs. John Bruning Mr. and Mrs. Theodore W. Brickman Mr. Donald H. Kirkland Mr. and Mrs. Kenneth Rutt Mr. and Mrs. Richard Gaby Mr. Ed Capen Charles Koch Institute Mr. and Mrs. Thomas A. Saunders III Mr. and Mrs. John N. Hanson Mr. and Mrs. Thomas W. Colbert, Sr. Mr. Lewis E. Lehrman Mrs. Kedren Scales Mr. and Mrs. Robert H. Kellen Mr. Ben Crow Mr. and Mrs. Gregg Mamikunian Searle Freedom Trust Mr. Mark A. Kolokotrones Mr. Gary L. Dawson Mr. and Mrs. George L. Mayer B.K. Simon Family Mrs. Dawn H. Potter The Richard and Helen Mr. and Mrs. Norman Metcalfe Charitable Foundation Sarah Scaife Foundation DeVos Foundation Mr. Lee R. Mitchell Mr. Larry H. Smead Mr. Edward R. Farber M. J. Murdock Charitable Trust Lowell C. Smith, Ph.D. Trustees’ Circle Mr. B. E. Faulkner Mr. and Mrs. Terence H. Murphree Thomas W. Smith Foundation Mr. Eugene Fliehman William Howard Flowers, Jr. The Ed Noble Family Advised Fund Sorenson Legacy Foundation Mrs. Ruth P. Hyde Foundation, Inc. Charles Maxfield and Gloria F. Ms. Corinne Spence Ms. Lynn S. Sullivan Mr. Tracy Fu and Ms. Sharon Wee Parrish Foundation Mr. and Mrs. Robert Stichweh Lillian S. Wells Foundation Mr. and Mrs. Robert S. Giles Mr. and Mrs. Robert V. Pennington Mr. and Mrs. Duane Stranahan, Jr. Gleason Family Foundation Mr. Neil H. Perkins Pike and Susan Sullivan Foundation Founders Google Inc. The Dr. P. Phillips Foundation Ed Uihlein Family Foundation Mr. Rafael Ahlgren Dian Graves Owen Foundation Mr. and Mrs. Gary L. Pilgrim Mr. and Mrs. Richard E. Uihlein Mr. amd Mrs. William L. Amos, Jr. Ms. Nancy Grimes Mr. Jerome M. Powell Mr. and Mrs. Douglas O. Waikart Ms. Betty A. Anderlik The Gardner Grout Foundation Qualcomm The Walton Family Foundation The Armstrong Foundation Mr. Kenneth Harwell Mr. and Mrs. Dick J. Randall Mr. and Mrs. Ronald B. Weinel Mr. and Mrs. Caesar A. Arredondo Mr. William Hebbeler Ray Foundation Mr. Richard Wells Atherton Foundation Grover Hermann Foundation Reynolds American Bell Charitable Foundation Howard Charitable Foundation Mrs. Barbara Richardson Eighteen Founders have asked

BAUMAN PHOTOGRAPHERS BAUMAN Mr. and Dr. Philip M. Bilden Mr. and Mrs. Ralph B. Humphreys Patrice K. Richardson, MD to remain anonymous

A SEASON OF GROWTH, A YEAR OF ACHIEVEMENT 45 Membership Levels 2017 Heritage Foundation Associates

Premier Associates Cedar Branch Foundation Heritage welcomed more than 85,000 new mem- Mr. Elliot J. Belkin Challenge Foundation bers in 2017. Our range of membership levels and H.N. and Frances C. Berger Foundation Mr. and Mrs. Edward A. Clark benefits can accommodate all. Mr. and Mrs. Lawrence J. Blanford Coca Cola Ms. Pamela Burke Mr. Roger Cohen Level Starting @ Mr. and Mrs. David W. Caldwell Delta Air Lines Ms. Gladys Choate Devon Energy Corporation Basic...... $25 Mrs. Helen B. Culp Mr. and Mrs. James W. Eggers Patriots Club...... $100 D’Avella Family Business El Pomar Foundation (Colorado only) Young President’s Club...... $250 Mr. Kent D. Dixon Mr. and Mrs. George W. Etheridge, Jr. President’s Club...... $1,000 Herbert H. and Barbara C. Evenstad Family Foundation Dow Foundation Mr. John M. Fierer Executive Committee...... $2,500 The Dunn Foundation Mr. and Mrs. Mark Fierer Premier President’s Club...... $5,000 Mr. and Mrs. William S. Edgerly The Alta and John Franks Foundation Associate...... $10,000 Eli Lilly and Company Mr. Robert G. Fuller, Jr. Executive Associate...... $25,000 Facebook The Arnold Garrison Foundation Premier Associate...... $50,000 Joseph J. Famularo and Bernard H. Mr. Roger B. Gatewood Kinzer Foundation Mr. Robert M. Gordon Founder...... $100,000 Dr. and Mrs. Michael J. Fedak Mrs. Kimberley B. Granger Trustees’ Circle...... $500,000 Mr. Sean M. Fieler Mr. and Mrs. Jerry Grossman Chairman’s Circle...... $1,000,000 Mr. Gerald H. Forman The Hamill Foundation Mr. and Mrs. Frank D. Freudenthal Mr. and Mrs. Clay W. Hamlin III For details on the benefits attached to each level, Mr. and Mrs. Philip M. Friedmann Ms. Ann R. Hardy please call (800) 546-2843 or visit MyHeritage.org. The Holman Foundation, Inc. Mr. and Mrs. Allen R. Hartman Mr. Joe Huskins Mrs. Harriet B. Hatch Mr. and Mrs. Eugene Jurkiw Mr. and Mrs. Ron J. Hazlett Mr. and Mrs. Brian G. Kelly HCSS Honoring Donor Intent Mr. Carl R. Lezius Mrs. Elinor Jacobs Mr. and Mrs. William Lowndes III Mr. and Mrs. George W. Karpus Mr. and Mrs. Josh McQueen Kita Hahn Kook Center USA When giving to any nonprofit, you should be able to Mr. and Mrs. Robert O. Naegele, Jr. Mr. and Mrs. Henry Kuchta rely on the organization to do three things: The Frederick and Julia Carl Lagrassa Nonneman Foundation Mr. Robert A. LeCompte 1. use your gift to advance its mission; The Robert S. & Star Pepper Mr. and Mrs. Richard T. Lee 2. honor any restrictions you place on the gift, and Foundation, Inc. Mr. and Mrs. Harold Levy 3. treat you with respect. Raytheon Company Mr. Thomas W. Lewis Mr. James A. Remington T.W. Lewis Foundation Mr. Robert W. Rust, USMC (Ret.) Mr. Thomas F. Linnen, Sr. Unfortunately, many philanthropic organizations William E. Simon Foundation Lockheed Martin have broken faith with their donors. Mr. Alden E. Stilson, Jr. Maclellan Foundation Mrs. Suzanna C. Thieblot Mr. Robert W. Mair At The Heritage Foundation, we regard your support Toyota Motor North America U.S.A. Mr. Steven Marken as a trust. We hold ourselves strictly accountable to Mr. and Mrs. Brian S. Tracy The Markkula Foundation you, and we pledge always to respect your philan- Mr. Michael S. Turner Mr. Denman K. McNear thropic intent. Indeed, our Articles of Incorporation Mrs. Ardis Walters Ms. Carolyn McVey demand it. Mr. Alan White Mrs. Naomi N. Merchant Mr. Thomas R. Zucker Mr. and Mrs. Michael T. Monahan The Montreal Economic Institute Should any major donor desire a written contract Executive Associates Mr. L. C. Neely, Jr. clearly stating the purpose and intent of the dona- Mr. and Mrs. Gilbert F. Amelio Mr. David W. Niemiec tion and how it shall be spent, we will gladly sign it. Mr. and Mrs. Edward K. Asplundh Mr. David Perdue Moreover, we make the president of Heritage per- Bader Family Foundation Mr. Edward E. Renfro sonally responsible for answering donor questions Mr. Gerald Balnius Miss Monte F. Richardson and reporting expenditures of donor funds. Barney Family Foundation Mr. Terry D. Richardson Ms. Lillian V. Brabson Mr. Robert M. Rosenthal This is our solemn pledge to you: When you con- Brady Family Trust Mr. and Dr. Mike Rydin Ms. Gretchen Brooks Mr. Robert W. Schneebeck tribute to The Heritage Foundation, your intent as Mr. and Ms. John R. Brown Mr. and Mrs. LaRue Schock a donor is always honored, never forgotten. Mrs. Jessie J. Carlstedt The Shanley Family Foundation Mr. James F. Causley, Jr. Mr. and Mrs. Harold Siegel

46 THE HERITAGE FOUNDATION | heritage.org ANNUAL 2017 REPORT BAUMAN PHOTOGRAPHERS BAUMAN

1 2

3 4 5

6 7 8

1. Founders Peter and Kay Winzenried flank UN Ambassador Nikki Haley at the 2017 President’s Club Meeting. Joining them is Thomas Wilson, that semester’s Peter and Kay Winzenried Intern. 2. Founders Bill and Brenda Amos with Rep. Ron DeSantis, R–Fla., Trustee Virginia Heckman, and Heritage Director of Donor Relations Andrew McIndoe at President’s Club. 3. Associate Kedren Scales, Founder Betty Anderlik, and Founder James Eller take a break from the cooking competition at the 2017 Annual Leadership Conference. 4. Doris Gradde, Billi Jean Murphree, and Kay Robbins visiting Lincoln Cottage for the Associate Members Dinner during President’s Club. 5. Ambassador J. William Middendorf II, a Heritage trustee, arrives at the President’s Club White House Briefing with Isabelle Lacombe, membership associate. 6. Founders Janet and Robert Miller at the White House briefing. 7. Fox News host Brian Kilmeade jokes with Associates John and Jean Hedberg at a President’s Club booksigning. 8. Heritage Trustee Mark Kolokotrones enjoys the reception at the 2017 Annual Leadership Conference. 47 *ALL PHOTOS IDENTIFY LEFT TO RIGHT. Harold Siegel, flanked by Heritage Vice President Bill and Lynda Middlemas receive the “Addition John Fogarty (LEFT) and Heritage Founder Edwin J. and Multiplication” Award from Heritage Founder Feulner, was honored with our 2017 “Coors, Noble, Edwin J. Feulner at the Annual Leadership Scaife Founders Award” in October. Conference in April.

Marjorie Dannenfelser (LEFT), president of the Susan Ali Richardson accepts our “George Washington B. Anthony List, received our “Robin and Jocelyn Generations Yet Unborn Award” on behalf of Martin Young Leaders Program Distinguished Trustee’s Circle Member Patrice Richardson Intern Alumni Award” from Heritage’s Helena and Founder Barbara Richardson (her aunt and Richardson and Premier Associate Robin Martin, grandmother, respectively) at the 2017 Annual co-sponsor of the award. Leadership Conference.

Other 2017 Heritage Award Winners

John Von Kannon The Edwin J. Feulner Coors, Noble, Scaife Patriot Award “Addition and Founders Award Bob Ellis, Glen Mills, Pa.; Founders Pat and Robin Stranahan Multiplication” Award Dr. James Piereson, New York, N.Y. George Brown, Bonita Springs, Fla. BAUMAN PHOTOGRAPHERS BAUMAN

48 THE HERITAGE FOUNDATION | heritage.org ANNUAL 2017 REPORT

Mr. and Mrs. James A. Smith Mr. John C. Bryan Mr. and Mrs. Keith M. Stewart Mr. Dean L. Buntrock Mr. and Mrs. Roger W. Stone Mrs. Berkeley A. Burch-Martinez Strong Foundation Trust Mr. and Mrs. David Burckel Sumitomo Mitsui Banking Corporation Ms. Betsy P. Burgett Mrs. Charles H. Taubman Mr. Neil J. Burmeister Mr. and Ms. Chris J. Taylor Mr. and Mrs. Robert D. Burroughs Mr. and Mrs. Clifford L. Thomson Mr. George M. Butler Mr. Raymond R. Thurston C.N. and Maria Papadopoulos Triad Foundation Inc. Charitable Foundation Mr. and Mrs. Ronald Trzcinski Mr. and Mrs. Mark A. Caldwell, Sr. Mr. and Mrs. Wallace E. Volwiler Mr. Ronald M. Cameron Mr. and Mrs. Dale M. Walsh Mr. and Mrs. D. J. Carder Mr. and Mrs. William L. Walton Mrs. Sheila Carlton Mr. and Mrs. Richard Weiss Mr. and Mrs. Donald Carter Meet Norman Metcalfe Marion G. Wells Foundation Mr. Ronald L. Carter Mr. Howard H. Weston Mr. and Mrs. Bill Chapin Charter Communications iven his MBA and long experience as chief finan- Associates Mr. and Mrs. Derwood S. Chase, Jr. Gcial officer of several major public and private Mr. Roy F. Abernethy The Chisholm Foundation companies, it’s no wonder Premier Associate and Mr. Adil Adi Mr. James Choi Heritage Legacy Society member Norm Metcalfe Mr. and Mrs. Charles H. Adler Mr. and Mrs. John B. Clough Alkin Co. Mr. James K. Cluverius takes issue with a Congress seemingly incapable American Fuel and Dr. Mark W. Connolly of balancing a checkbook. Fiscal conservatism first Petrochemical Manufacturers Mr. Robert A. Cook led him to Heritage more than 20 years ago. Since Mr. and Mrs. Robert A. Anderson Mr. William O. Cooley then, his appreciation and understanding for all the Mr. Robert C. Anderson Ms. Darden K. Coors work done by Heritage—and more recently, Heritage Apex Foundation Ms. Catherine G. Crellin Action—has grown exponentially. Mr. and Mrs. Jeffrey B. Armour Mr. Edwin E. Cull “It’s frustrating to be one citizen out of 320 Dr. and Mrs. Larry P. Arnn Mr. and Mrs. Jason Damron million,” says Metcalfe. “Supporting Heritage is a Artek Inc. Mrs. Jean L. Davenport chance to guide the policies of our country. From Mr. and Mrs. James J. Ascher Mr. James C. Day Ms. Doris E. Austin Mr. and Mrs. William M. Decker IV the work you do in Congress to getting the mes- Mr. and Mrs. Laurel Auxier Ms. Barbara DeSpain sage out to the American public through channels Mr. and Mrs. Douglas Axen Mr. and Mrs. Robert G. Dettmer like The Daily Signal, I appreciate the breadth of Mr. Eugene W. Ball Mr. James H. Dible Heritage’s impact. One person can’t do very much, Mr. and Mrs. Richard O. Bard Dodge Jones Foundation but Heritage has a big enough presence to make a Mr. and Mrs. Robert E. Barkei Mr. Edward D. Doherty significant difference for all of us.” Mr. and Mrs. Peter Barrett Mr. Douglas Dolan, Sr. Metcalfe recently made an inspired decision to Mr. and Mrs. Ronald O. Baukol Donahue Family Foundation, Inc. name both The Heritage Foundation and Heritage Bay Branch Foundation The William H. Donner Foundation, Inc. Action the ultimate beneficiaries of his IRA. “Leaving Mr. and Mrs. George T. Beck Mr. and Ms. John M. Draper Ms. Lorraine L. Becker Ms. Vivian DuBose my IRA to my children would mean more than half Mr. and Mrs. Chet Beiler Mr. James Dyer of it would vanish in taxes. Giving it to Heritage Ms. Teresa M. Bellew Mr. Douglas C. Edman through my estate is tax effective and will make Mr. and Mrs. T. F. Beresford William J. and Julia M. such a difference.” Mr. Kjell Bergh Edwards Foundation “I worry about my children and what the coun- Mr. and Mrs. Robert J. Bertch Mr. and Ms. Steven Einhorn try would have looked like after eight years of The Bevevity Community Impact Fund Mrs. Mary D. Elliott Hillary Clinton.” says Metcalfe. “It’s heartwarm- Mr. and Mrs. James J. Bochnowski Mr. Robert W. Ellis ing to see President Trump has already adopted Mr. and Mrs. Drew Boersma Mr. George T. Elmore Mr. Stephen B. Bonner Erickson Family Charitable Foundation 64 percent of Heritage’s Mandate for Leadership Mr. and Mrs. David Borgen Fairchild-Martindale Foundation recommendations, even higher than Reagan’s 49 Mr. and Mrs. Norm H. Bouton, Jr. Dr. Peter C. Farrell percent. That’s a real tangible for me to take away Mr. and Mrs. Richard W. Boyce Mr. Douglas W. Ferris, Jr. as a supporter.” Ambassador and Mrs. Stephen F. Brauer The Lundy Fetterman “For Heritage to strategically get in there early Mr. and Mrs. Malcolm W. Brawn Family Foundation and help steer this great ship in the right direction Ms. Susan A. Bridges Ms. Jill L. Finch shows tremendous initiative.” Dr. and Mrs. Bart J. Broadman Ms. Carly Fiorina “I view Heritage as True North for our country,” Mrs. Carole B. Brown Mr. John Fuller Metcalfe says. “Sometimes we get off track—these Mr. and Mrs. Craig R. Brown Mr. Dudley Garner Mr. and Mrs. George R. Brown Mr. and Mrs. J. P. Gavaghan things tend to go in cycles—but when opportunity Ms. Nancy M. Brown Mrs. Elizabeth A. Germer arises, Heritage is the North Star America needs.”

BAUMAN PHOTOGRAPHERS BAUMAN Mr. Timothy R. Brownlee Rollin M. Gerstacker Foundation

A SEASON OF GROWTH, A YEAR OF ACHIEVEMENT 49 Gianforte Family Foundation Mr. Samuel F. Lek Mr. and Mrs. Yale Gieszl LeMans Corporation Mr. and Mrs. Ed W. Gilbertson Dr. and Mrs. Peter Lamelas Mr. Deane Glen Mr. John L. LeRoy Mr. and Mrs. John M. Gordon Dr. and Mrs. Robert T. Lewit, M.D. Mr. and Mrs. Bruce C. Gottwald, Sr. Liberty Healthshare Mr. and Mrs. J. R. Grant Mr. Harrell W. Ligon, Sr. The Albert M. and Lyda M. The Edward A. and Catherine L. Green Foundation Lozick Foundation Mr. Michael H. Guetz Mr. David W. Lozier, Jr. H&R Block, Inc. Mr. Richard E. Lunquist Mr. and Mrs. Goran Haag Mrs. Terry M. Lynch Mr. J. P. Haberichter Mr. and Mrs. Bill Lyons Mr Ryan Haggerty Mr. Michael C. Maibach Mrs. Jan Hair The Mailman Foundation 1 Mr. and Mrs. John Hajjar Mr. Todd R. Mall Jaqueline and Willis Mrs. Laurel L. Martin Hamilton Foundation Ms. Lena C. Mathis Mr. and Mrs. J. Wayne Hamman Mr. and Mrs. Joe Maynard Dr. and Mrs. Promod Haque Mr. and Mrs. Thomas Mays Mr. Price Harding Mr. and Mrs. Scott W. McEachin Mr. Frank Harshaw Mr. and Mrs. Thomas L. McGrath Mrs. Beverly J. Hartig Mr. and Mrs. Philip McKinney Mr. and Mrs. Jerry L. Hayden Mr. and Mrs. James McLaughlin Mr. and Mrs. Larry L. Hayden Mr. Jim H. McManus, Jr. Ms. Reta K. Haynes Ms. Patricia K. McPherson Mr. and Mrs. John W. Hedberg Mr. Edwin McVaugh, Jr. Mr. James Hermanek Mr. and Mrs. James B. McWethy Albert and Ethel Herzstein Mr. Richard Mickelson Charitable Foundation Mr. Harvey L. Miller Mr. Jim P. Hicks Robert S. and Janet L. Miller 2 Mr. George C. Hixon Family Foundation Mr. Michael L. Hodges Mr. and Mrs. Ted Millice Mr. Forrest E. Hoglund Mr. Bobby D. Mize Mr. and Mrs. Edson P. Holland Mr. and Mrs. Christopher S. Moody, Sr. Mr. and Mrs. Kent L. Holtgrewe Mr. and Mrs. J. Michael Moore Mr. and Mrs. Chet Houston Mr. Ralph Morera Mrs. Caroline R. Hunt Mrs. Carol A. Morris Mr. and Mrs. Randall K. Hunter The Morris Foundation The Huston Foundation The Ted Muhs Foundation Mr. and Mrs. Joseph M. Iacovetta Mr. and Mrs. Joe P. Murphy Mr. and Mrs. Ralph E. Janes III Melvin J. and Harriet H. Naser Dr. and Mrs. Paul Jepson Charitable Trust Mr. and Mrs. Charles B. Johnson The Negaunee Foundation Mr. and Mrs. William Johnson Mr. Allen T. Noble Mr. and Mrs. George L. Johnston Mr. and Mrs. David Nolan Mr. and Mrs. Richard Jones Mr. and Mrs. Robert C. Odle, Jr. 3 Ms. Rebecca L. Julian Mr. Donald A. Oeters Ms. Lidia Jurkiw-Gulawsky Mr. James J. O’Neill 1. RIGHT TO LEFT: Founders Leonard Robinson and Jeanne Mr. and Mrs. Paul Kalmbach Mrs. Franca G. Oreffice Haskell, Heritage’s Heather Davis, and Haskell’s Mr. Richard E. Kellam Mr. Joseph Oswald Mr. and Mrs. Thomas L. Kempner nephews Jeremy and Ruy Bautista enjoy the final Mr. and Mrs. Bryan Owens William S. Knight Foundation Inc. Mr. Ashley D. Pace, Jr. reception at the Annual Leadership Conference. Mr. Marvin C. Koeper Mr. and Mrs. Alain J. Palmieri 2. Heritage Trustee Ryan Haggerty (CENTER) and his wife Mr. Richard A. Kreitzberg Mr. and Mrs. Douglas Parsons Regan catch up with Heritage’s J.B. Horton at the Vernon Krieble Foundation Mr. James L. Patton Annual Leadership Conference. Mr. and Mrs. Richard W. Kurtz Mr. T. Ellis Peak, Jr. 3. Gathering to celebrate Preston A. Wells Day at Mr. Eugene Kusmiak William Penn Foundation Dr. David L. Lacey Lovett & Ruth Peters Foundation Heritage are (LEFT TO RIGHT) Heritage Founder Edwin Mr. and Mrs. Bruce Lang Mr. and Mrs. Leroy Peterson J. Feulner, Trustee’s Circle Member Walter Bell Mr. Thomas D. Lasersohn Mr. and Mrs. Guido M. Pichini (a trustee of the Lillian S. Wells Foundation), the Mrs. Patricia Lawrence Mr. Alexander Pinter Rev. George Smith, and Heritage Vice President Mr. and Mrs. Ronald Lazof John William Pope Foundation

Jennifer Marshall. Dr. and Mrs. Charles Lederer Mr. and Mrs. Louis S. Pope FOUNDATION THE HERITAGE PHOTOGRAPHERS; BAUMAN

50 THE HERITAGE FOUNDATION | heritage.org ANNUAL 2017 REPORT

Mr. and Mrs. Reinhold Preik Louis and Nellie Sieg Fund Tippins Foundation Mr. Tom L. Wheeler III Mr. and Mrs. John H. Quinn, Jr. Mr. Willis B. Skillman Mr. and Mrs. Stephen C. Trice Mr. and Mrs. Thomas B. Wheeler Ms. Fern S. Randall Mr. David Smith Mr. Calvin K. Upp Mr. Thomas W. Wiley Mr. and Mrs. Henry S. Reinke Mr. and Mrs. William B. Smith The Steve & Amy Van Mrs. Evelyn F. Williams Ms. Lola Reinsch and Mr. J. Mrs. Shirley M. Sontheimer Andel Foundation Ms. Dorothy Williamson Almont Pierce Mr. J. C. Sparkman Mr. James G. Waldrup III Mr. James Wintersteen Mr. and Mrs. Charles D. Reite Mr. William C. Steen Mr. and Mrs. T. U. Walker Mr. Frank E. Witt Mr. Kenneth R. Reynolds Mr. Lowell F. Steusloff The Walker Foundation Mrs. Joyce Wohlend Mr. Thomas M. Roselli Mrs. Marilyn Stiglitz Mr. Laurence Warren Mr. and Mrs. Thomas E. Workman Mrs. Judith Rosenbaun Stiles-Nicholson Foundation Mr. Peter C. Wasilkoff Mr. and Mrs. Andrew Wyatt Mr. and Mrs. John B. Rothenberger Mrs. Diane J. Stites Mr. and Mrs. Pedro E. Wasmer Mr. and Mrs. Donald H. Young Mr. and Mrs. Paul Rubschlager Mr. Warner E. Stone Mr. Charles R. Watkins, Jr. Ms. Leslie D. Young Mr. and Mrs. Howard Sadkin Mr. John M. Supino Katharine Audrey Webb Foundation Mr. William M. Young, Jr. Mrs. Barbara Saunders Mr. and Mrs. Kermit S. Sutton Mr. and Mrs. James F. Webert Mr. George J. Zallie Mr. Thomas Sayer Mr. and Mrs. Joseph D. Swanson Mr. and Mrs. Duane M. Weise The Zeiser Family Mr. Roger L. Schaller Mr. and Mrs. Gary L. Swenson Mrs. Nancy D. Weiss Mr. Robert K. Zelle Ms. Jean M. Schiffmann The Sidney A. Swensrud Foundation Mr. and Mrs. Stephen West Mr. A. C. Zucaro Jack and Donna Scott Dr. Mirian H. Taddei Samuel L. Westerman Foundation Thirty-six Associates have asked to Mr. Mickey Seeman Mr. and Mrs. Richard Talvola Westmeath Foundation remain anonymous

John and Barbara Rumpel: Standing with the Constitution

n his youth, John Rumpel of Melbourne Beach, Fla., guidelines Heritage developed are being followed so Iheard the adage, “There are none so blind as those closely,” Mrs. Rumpel explains. “And I am very optimistic who will not see.” It sprang to mind again as he reflected about Heritage’s future under Kay Coles James.” upon America’s current ideological divide. The Rumpels are excited to be part of Heritage’s “Liberals don’t think; they react emotionally,” he says. future. According to Mrs. Rumpel, “I think the best leg- “I believe that’s where The Heritage Foundation has an acy we can leave is the continuation of this country impact, because Heritage experts think things through under the Constitution, as it was written, and Heritage with logic and common sense, and they come out with plays a key role in that.” the right course for our country.” And with the Constitution as a touchstone, the Mr. Rumpel and his wife, Barbara, are members of Rumpels feel there is no challenge America can’t con- Heritage’s Chairman’s Circle and the Heritage Legacy quer. “The problems we have in our society are not dif- Society. They first became supporters in 2010, after hear- ficult,” Mr. Rumpel says. “It just takes courage to deal ing Sean Hannity praise Heritage’s conservative leadership. with them.” Both are passionate about a number of issues, Mr. and Mrs. Rumpel are fearless in speaking out for but their conservatism and their outstanding support what’s right, and The Heritage Foundation is stronger for Heritage ultimately reflect a steadfast belief in the because of their outstanding leadership. importance of the U.S. Constitution. “A lot of people worked very hard to create the Constitution, and many have fought to protect it and have even given their lives in its defense,” Mr. Rumpel notes. “If we just give up on it now, that’s like saying all those people died in vain.” The Rumpels see The Heritage Foundation as a critical line of defense for constitutional values. “I think Heritage, being founded on the principles of the Constitution, can help our elected officials form public policy that is conservative and that adheres to the ideals of America’s Founding,” says Mrs. Rumpel. Mr. and Mrs. Rumpel take pride in seeing their sup- John and Barbara Rumpel met Sean Hannity port for Heritage in action. (MIDDLE) at The Heritage Foundation’s President’s “I’m thrilled that Heritage is playing such an import- Club Meeting in 2015. ant role in the Trump administration, and that the policy JEFFREY MALET

A SEASON OF GROWTH, A YEAR OF ACHIEVEMENT 51 Heritage Legacy Society Wall of Freedom Safeguarding Our Founding Principles for Future Generations

ur duty to ourselves, to posterity, and to mankind call on us by every motive which is Osacred or honorable, to watch over the safety of our beloved country… —Thomas Jefferson 1809

The members of the Heritage Legacy Society have shown Heritage Legacy Society is comprised of members who their enduring love for America by making a commitment have remembered Heritage in their wills, trusts, or other to safeguard our founding principles for future genera- planned gifts. We were pleased to welcome the following tions. Chaired by Rae and Belden Bell of Marshall, Va., the new members in 2017:

Ms. Janet Ahlgren Mrs. Freda Brause Mr. and Mrs. John B. Clough Mrs. Ann H. Dunk Mr. Charles Ammann Mr. and Mrs. Gregory J. Brewer Mr. Will L. Cooper, Jr. Ms. Cynthia Dunlop Mr. Larry T. Amor Mr. Robert J. Brodbeck Mr. and Mrs. C. Jack Corgan Ms. Cynthia N. Edwards Mr. Robert C. Anderson Mr. D. T. Brown Mr. Ben Crow Mr. John Ekdahl Mr. and Mrs. Edward K. Arndt Ms. Harriet L. Bruce Mr. James F. Cully Mrs. Judith Ellison Ms. Doris E. Austin Mr. John C. Bryan Ms. Donna Damuni Ms. Pamela K. Emmer Mr. and Mrs. Samuel W. Autrey Mr. and Mrs. H. Terry Buchanan Mr. Herron Dawson Mr. William J. Evans Mr. Richard E. Beebe Mr. and Mrs. Edward N. Caldwell Ms. Mary DeMarco Mr. and Mrs. Robert M. Ewart Mr. John Bennis Mr. Gary Carnaghi Ms. Barbara DeSpain Dr. Philip J. Fleming Mr. John H. Bentz Ms. Carol A. Carpenter Mr. James H. Dible Mr. Nathan Fox Mr. James Bevill Mr. Alvin Carstensen Dr. John Dolan Mr. Richard Francesconi Ms. Bertha W. Binford Gerald M. Casey, M.D. Mr. and Mrs. William J. Dove Mr. Erwin P. Frech, Jr. Mr. John K. Bishop Mr. Fred Cauffman Mr. James, Drane Mr. Larry D. Fredricks

Mrs. Maryjo Bousek Mr. Donald Chriscoe Mr. and Mrs. Robert Duitz Mr. and Mrs. Frank D. Freudenthal RICHARD GREENHOUSE

52 THE HERITAGE FOUNDATION | heritage.org ANNUAL 2017 REPORT

Mr. Dean A. Frickey Mr. Roland R. Parris, Jr. Mr. Joe Glasco Mr. James L. Patton With Gratitude… Mr. Donald Gobel Mrs. Christa G. Percopo We honor the memory of those Heritage Legacy Mr. Dennis J. Gorner Mr. and Mrs. Donald C. Pesci Society members whose gifts we received in 2017. Mr. James Hammers Mr. J.C. Piers Ms. Carolyn Harrold Ms. Emerald M. Rauscher Mr. Robert C Hawkinson Mr. Donald J. Read Mr. Rafael Ahlgren Mr. Thomas F. Linnen, Sr. Mr. and Mrs. William H. Held Mr. John Rebstock Ms. Priscilla Alexander Mr. Forest E. Lisle Mr. Karl Helft Dr. and Mrs. Garth T. Reid Ms. Betty A. Anderlik Mr. William T. Lowe Ms. Margaret Heller Mr. James Reinl Mrs. Lenore C. Anderson Mr. James E. Lyons Mr. and Mrs. Glen Hersch Ms. Anita Roche Mrs. Hugh M. Askren Ms. Genevieve MacHarg Mrs. Beverly J. Hinds Mr. Michael Rohrbaugh Mr. Richard F. Aster, Jr. Mr. Edward C. Malmstrom Mr. William Hodes Mrs. Judith Rosenbaum Mr. Gerald Balnius Ms. Lena C. Mathis Mr. David Hosley Mr. Charles Rowe Mrs. Margaret P. Barrett Mr. Edwin McVaugh, Jr. Mrs. Georgia B. Hughes Mr. John Russell, Jr. Mr. Elliot J. Belkin Mrs. Natalie Meckle Mr. William Judd Mr. and Mrs. Kenneth Rutt Ms. Teresa M. Bellew Mrs. Naomi N. Merchant Mr. George C. Kaiser Mrs. Dot C. Scheeres Ms. Margo Blades Mr. Richard Mickelson Mr. Edward R. Kennedy, Esq. Ms. Jean M. Schiffmann Ms. Lillian V. Brabson Mr. James A. Middleton Mr. Richard D. Kern Mr. Carl Schlichtinger Mr. William R. Broadbent Mrs. Kathryn D. Muench Mr. and Mrs. Karl Kohlrus Mr. Ronald Schroyer Mr. Roger A. Brown Mr. Terence H. Murphree Mrs. Mary Kretschmer Mr. Robert H. Schwarzmann Ms. Roma Brown Mrs. Nan Osbon Mrs. Jean I. Krupinski Mr. Gordon B. Schweitzer Mr. Ed Capen Mr. Oscar M. Ostlund, Jr. Mr. Donald H. Laidlaw Mr. Rudolph W. Silc Mr. D. J. Carder Mr. Joseph Oswald Mrs. Jean Lamb Mr. Allen H. Simon Mrs. Jessie J. Carlstedt Mr. James Parsons Ms. Pat A. Langevin Mr. Jeffrey Simon Mr. Roger Cohen Mr. Royce A. Peabody Mr. Leland T. Larson Ms. Beryl C. Siscoe Ms. Catherine G. Crellin Mr. John M. Peregrim Mr. S. Latta Ms. Charlotte Smith Mr. J. L. Cronin, Jr. Mr. Neil H. Perkins Mr. Paul M. League Ms. Holly M. Smith Mr. Ben Crow Mr. Alexander Pinter Mr. and Mrs. John F. Lehman Ms. Pamela J. Smith Mr. Edwin E. Cull Mrs. Dawn H. Potter Mr. J. C. Lewis III Miss Annamarie D. Smoyer Mrs. Helen B. Culp Mr. Lloyd A. Rasmussen Ms. Catherine Lioi Mr. Charles Smoyer Mr. Gary L. Dawson Mr. Edward E. Renfro Mr. Thomas Loll Mr. Stephen Spafford Mr. Kent D. Dixon Mr. Guy J. Ricco Dr. and Mrs. Bernabe Loret de Mola Mr. Richard Speer Mr. Douglas Dolan, Sr. Mr. Sean Rice Ms. Marjory J. Lubbes Mr. Douglas Springmann Mr. Robert J. Dreisbach Miss Monte F. Richardson Mr. and Mr.s. John Luttrell Mr. David Starkey Mrs. Mary D. Elliott Mr. Thomas M. Roselli Mr. and Mrs. Mark S. Maclnnis Mr. Daniel J. Sullivan Mr. Edward R. Farber Mr. Kenneth Rutt Ms. Marianne Mandelin Mr. John M. Supino Mrs. Bettie C. Fenton Mr. Victor L. Sanko Mr. Andrew E. Mast Ms. Eleanor Swink Mr. Eugene Fliehman Mrs. Barbara Saunders Mr. Raymond G. McCabe Mr. David Takesian Mr. Gerald H. Forman Mr. Glenn Scharp Dr. and Mrs. George McCan Mr. Michael C. Tarrant Mrs. Martha Georgelos Ms. Frances Schumacher Mr. Tim McCorkle Mrs. Charles H. Taubman Mrs. Elizabeth A. Germer Mr. Sanford A. Silverstein Ms. Donna McCoy Mr. Neal Thomas Mr. Deane Glen Mr. John D. Sitterson Ms. Lisa McFarland Mrs. Nancy Thompson Dr. Robert L. Goetz Mrs. Evangeline Smith Mr. Eileen McIntyre Mr. Carl E. Trapp Mr. David J. Golden Ms. Joyce Smith Mr. and Mrs. Edward McManus Mr. Robert Turk Ms. Lucie Grant Mr. Lowell C. Smith Mr. Peter J. McNulty Ms. Joyce Vanatta Ms. Nancy Grimes Mr. Lowell F. Steusloff Mr. and Mrs. Norman Metcalfe Mrs. Kathleen Vasile Mr. William H. Grimes Mr. Keith M. Stewart Mr. and Mrs. Richard T. Miner Miss Elianor Vessali Ms. Ann R. Hardy Mr. Alden E. Stilson, Jr. Ms. Amy Minning Mrs. Laurine A. Volkmann Mr. Kenneth Harwell Ms. Lynn S. Sullivan Captain Christopher G. Montes Mrs. Charlotte A. Wagner Mrs. Harriet B. Hatch Dr. Mirian H. Taddei Mr. James A. Moore Mr. Roger A. Wahldick Mr. William Hebbeler Mrs. Charles H. Taubman Mr. Shon Morris Mr. and Mrs. Douglas O. Waikart Mr. James Hermanek Mr. Thomas Tipi Ms. Henrietta Morris Mr. Laurence Warren Mr. Joe Huskins Dr. Louise F. Wailus Mr. and Mrs. Keith D. Morrison Mr. and Mrs. Thomas Watling Mrs. Ruth P. Hyde Mrs. Joyce Wohlwend Mr. and Mrs. Gail Murrell Mr. and Mrs. C. Ross Westley Mr. Robert E. Kern Ms. Virginia B. Woolf Mr. Paul D. Myers Mr. Donn Whitacre Mr. Donald H. Kirkland Ms. Eileen Zeindlhofer Mrs. Nancy Nagamine Mr. Arthur Williams Mr. Carlton P. Kirst Mr. Robert K. Zelle Mr. and Mrs. Dwight F. Nelson Mr. Edward C. Wilson Dr. R. C. Koorenny Mr. Thomas R. Zucker Mr. Earl Newborn Mr. Charles Winant Mrs. Charlotte Kowalewski Mr. Jerry Newmin Mr. John C. Winkler Mr. John R. Kruppa Fifteen Heritage Legacy Society Mr. and Mrs. Michael M. Nye Mr. Al Woodill Mr. Carl Lagrassa members asked that their gifts Mr. William S. Ostrander-Herit Mr. Keith Zibell Mr. Carl R. Lezius remain anonymous. Mr. Charles Otto Thirteen Heritage Legacy Society Mr. Gordon L. Overbey members wish to remain anonymous.

A SEASON OF CHANGE, A YEAR OF ACHIEVEMENT 53 2017 Financial Statements

STATEMENT OF FINANCIAL POSITION* STATEMENT OF ACTIVITIES* As of December 31, 2017 Year ended December 31, 2017 ASSETS OPERATING REVENUES Cash and cash equivalents $7,032,712 Contributions: Receivables 8,242,842 Individuals $65,170,659 Prepayments and other assets 760,214 Foundations 8,267,476 Total current assets 16,035,768 Corporations 3,749,390 Total operating contributions 77,187,526 Investments 207,523,156 Receivables, net 6,202,498 Investment withdrawal 10,780,013 Property and equipment, net 85,207,012 Program revenue 247,084 Other assets 942,466 Rental and other income 3,359,360 Total long-term assets 299,875,132 Total other operating income 14,386,457 TOTAL ASSETS $315,910,900 Total Operating Revenues $91,573,983 LIABILITIES AND NET ASSETS Operating Expenses Accounts payable and accrued expenses $9,447,900 Research $24,212,168 Notes payable 4,628,105 Education 27,782,221 Total current liabilities 14,076,005 Media and government relations 10,095,019 Total program services 62,089,408

Notes payable 21,579,924 Fundraising 15,023,738 Deferred obligations and planned gifts 14,457,417 Management and general 2,643,692 Total long-term liabilities 36,037,341 Total supporting services 17,7667,430 TOTAL LIABILITIES $50,113,346 TOTAL OPERATING EXPENSES $79,756,838 NET GAIN FROM OPERATIONS $11,817,145 Unrestricted net assets: NON-OPERATING ACTIVITIES Board designated 127,938,833 + Restricted contributions $10,117,999 Undesignated 79,234,709 + Net investment Gain 30,710,640 Temporarily restricted net assets 51,417,301 (–) Depreciation 4,393,361 Permanently restricted net assets 7,206,711 (–) Interest expense 785,235 Total net assets 265,797,554 (–) Investment withdrawal 10,780,013 (–) Change in restricted net assets 11,570,215 TOTAL LIABILITIES AND NET ASSETS $315,910,900 TOTAL NON-OPERATING ACTIVITIES $13,299,815 CHANGE IN NET ASSETS $25,116,960 *Preliminary results for The Heritage Foundation only. NET ASSETS—Beginning of year $240,680,594 Heritage Action reports its financials separately. Final audited financial statements will be available on or after July 31, 2018 NET ASSETS—End of year $265,797,554

2017 Operating Revenues 2017 Operating Expenses

Programs 78% Contributions 84% Fundraising 19% Program Revenue & Other Income 16% Management & General 3%

54 THE HERITAGE FOUNDATION | heritage.org The Heritage Foundation Board of Trustees: (FROM LEFT) Anthony J. Saliba, Chicago, Ill.; Robert Pennington, Darien, Conn.; Larry P. Arnn, Hillsdale, Mich.; Brian Tracy, Solana Beach, Calif.; Edwin J. Feulner, Alexandria, Va.; Nersi Nazari, Atherton, Calif.; Thomas A. Saunders III, Chairman, Palm Beach, Fla.; Kay Coles James, Fairfax Station, Va.; Jerry Hume, San Francisco, Calif.; Mark A. Kolokotrones, La Canada, Calif.; J. William Middendorf II, Little Compton, R.I.; Barb Van Andel-Gaby, Vice Chairman, Duluth, Ga.; William L. Walton, Washington, Va.; Abby Moffat, Bethesda, Md.; Steve Forbes, New York, N.Y. (NOT PICTURED) Michael W. Gleba, Pittsburgh, Penn.; Ryan Haggerty, Fort Worth, Texas; Virginia Heckman, Atlanta, Ga.; Edwin Meese III, McLean, Va.; Rebekah A. Mercer, New York, N.Y. DAVID HILLS; FRASIER PHOTO HILLS; FRASIER DAVID The Heritage Foundation

OUR MISSION: To formulate and promote conservative public policies based on the principles of free enterprise, limited government, individual freedom, traditional American values, and a strong national defense. Board of Trustees Society of Emeritus Trustees Thomas A. Saunders III, Chairman Phillip N. Truluck, Chairman Barb Van Andel-Gaby, Vice Chairman Midge Decter Larry P. Arnn, Ph.D. William E. Simon Jr. Edwin J. Feulner, Ph.D. Steve Forbes Officers* Michael W. Gleba The Hon. Kay Coles James, President Ryan Haggerty Kim R. Holmes, Ph.D., Executive Vice President Virginia Heckman John P. Backiel, Vice President Jerry Hume Robert B. Bluey, Vice President The Hon. Kay Coles James Wes Dyck, Vice President Mark A. Kolokotrones John P. Fogarty, Vice President The Hon. Edwin Meese III Eric Korsvall, Vice President Rebekah A. Mercer John Malcolm, Vice President The Hon. J. William Middendorf II Jennifer A. Marshall, Vice President Abby Spencer Moffat John M. Mitnick, Senior Vice President, Nersi Nazari, Ph.D. General Counsel, and Secretary Robert Pennington Jack Spencer, Vice President Anthony J. Saliba James Jay Carafano, Ph.D., Vice President Brian Tracy Bridgett G. Wagner, Vice President William L. Walton *As of February 6, 2018 Honorary Trustees David R. Brown, M.D., Chairman Emeritus The Hon. Frank Shakespeare

As a nonprofit 501(c)(3) organization, we rely on the financial contributions of the general public: individuals, foundations, and corporations. We accept no government funds and perform no contract work. We welcome your support. 214 MASSACHUSETTS AVENUE N.E. | WASHINGTON, DC 20002 (202) 546-4400 | heritage.org What They’re Saying About Heritage

… titans in the fight to defend, promote, and preserve our great American heritage. —Donald Trump, Heritage Foundation President’s Club meeting, Oct. 19, 2017

… a storied American institution, which currently holds the title of … “Donald Trump’s favorite think tank.” —Tevi Troy, The Atlantic, Dec. 19, 2017

… they absolutely have Trump’s ear. —Jamiles Lartey, The Guardian, Nov. 22, 2017

It is no secret on where the Trump administration is getting their ideas. They are running a systematic playbook put together by The Heritage Foundation, a conservative think tank that has been around since the [1970s]. … Their main office is just steps from the United States Capitol and the halls of Congress, where they wield unparalleled influence. —Mustafa Santiago Ali, The Guardian, June 15, 2017

Up against the clock and with many senior staff positions still vacant, President Trump’s Office of Management and Budget turned to one of the nation’s most conservative think tanks—The Heritage Foundation—for inspiration. The result: The Trump budget proposal released last week bears a striking resemblance to The Heritage Foundation’s Blueprint for Balance: A Federal Budget for 2017, complete with a list of deep spending cuts designed to scale back the size and scope of the federal government. —Steven Mufson, The Washington Post, March 27, 2017

What They’re Saying About Kay Coles James

Her background is formidable … her vision is even more compelling. —Syndicated Columnist Cal Thomas

Adding and multiplying almost sounds like a novel idea in politics lately. In Kay James, Heritage has picked someone who knows how that’s done. —Wall Street Journal Editorial Board

A phenomenal choice from @Heritage—Kay Coles James will be an outstanding leader for the conservative movement in the months and years to come. —Rep. Mark Meadows, R-N.C.

Congratulations to @KayColesJames. An outstanding leadership choice by @Heritage. —Rep. Jim Jordan, R-Ohio

Kay is a smart, articulate leader who will motivate people toward positive ideas for individual freedom and opportunity for all! —Former Va. Gov. George Allen